Semiconductor capital spending will be worth $64.5 billion this year, up 11.4 percent from 2013. And capital equipment spending will increase 17.1 percent in 2014.
So says market research firm Gartner in a report that indicates that the increases are driven by strong memory average selling prices (ASPs) as well as higher consumer demand for gizmos and gadgets.
The report said that there’s undersupply on DRAM and that will continue next year, but then we’ll see one of the characteristics of semiconductor swings and roundabouts. Companies build extra capacity in times of drought only to find they’ve built too much. Gartner said we’ll see oversupply in 2016.
Samsung, and SK Hynix are both ready to ramp up DRAM manufacturing in order to meet the pent up demand.
Memory capital spending will increase by 4.5 percent this year, but in the long time demand will be flat, said Gartner.
