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Semi manufacturing equipment spend expected to decline 14% this year and grow 27% next year

March 14, 2019 / David Manners

Spending on semiconductor manufacturing equipment is expected to decline 14% to $53 billion in 2019, but grow 27% next year to set a new record, says SEMI. Spurred by a slowdown in the memory sector, the 2019 downturn marks the end of a three-year growth run for fab equipment spending.
Over the past two years, memory accounted for an annual share of about 55% of all equipment, a proportion expected to drop to as low as 45% in 2019 but rebound to 55% in 2020, SEMI indicated. With memory representing an outsize share of total spending, any fluctuations in the memory market impact overall equipment spending.
SEMI’s review of fab equipment spending by half year shows that high inventory levels and weakening demand led to a bigger-than-expected decline in DRAM and NAND in the latter part of 2018, driving down memory spending 14%.