Semiconductor industry investing over $40 billion annually, says SEMI

June 30, 2011 — The semiconductor industry will invest about $44 billion in production equipment globally in 2011, which industry organization SEMI calls a "record sum."

$3.2 billion of capex will be spent in Europe, SEMI noted, as it released the data in advance of SEMICON Europa, which will take place in October, and SEMICON West, which will take place in the US in July.

SEMI recently updated its global numbers for 1Q11 chip tool demand, which inched up from the prior quarter (1% to $12B). Bookings were down, though, -11% to $11.08B. While solid growth continued in the US and in Europe, Taiwan, China, and the rest of world pulled back slightly.

Material expenditure for European semiconductor production will be $3.3 billion in 2011. Q1 2011 saw $1.27 billion spent in Europe, up from the same period in 2010.

In 2012, $41 billion will be spent globally on "new equipment, procedures and processes," predicts Christian Gregor Dieseldorff, senior analyst, SEMI industrial research and statistics group.

In front-end wafer fab, production capacities will rise 9% globally in 2011; 7% in 2012 growing to the expected continuous high demand. Throughout Europe, 300mm wafer capacity will rise by 23% in 2011 and 14% in 2012.

However, semiconductor market consultant Semico predicts a brief semiconductor industry slowdown through 2012, based on its monthly Semico IPI report.

The analysis concludes that incoming orders and the general semiconductor industry atmosphere are positive, SEMI reports.

SEMI represents companies in the semiconductor industry and related sectors. For more details see

SEMICON Europe in October will host a new Plastic Electonis segment, in conjunction with the 7th Global Plastic Electronics Conference covering organic and printed electronics and photovoltaics, and new display and lighting technologies. 

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