SEMI predicts semiconductor manufacturing equipment will drop 18%[electronics manufacturing expo news release]

13 Jul 2019

According to the Nikkei Chinese Network reported on July 10, the International Semiconductor Equipment and Materials Association (SEMI) announced on July 9 that the global electronics manufacturing expo sales of semiconductor manufacturing equipment in 2019 will be reduced by 18% year-on-year to 52.7 billion US dollars.

Semiconductor manufacturers are suppressing equipment investment due to the deterioration of memory market. The data released this time is down compared with the expected ($59.6 billion) at the end of 2018. After a lapse of four years, the deceleration of the semiconductor market is becoming more and more clear.

Demand for semiconductors in smartphones and data centers is sluggish, and the trend toward reduced equipment investment among semiconductor electronics manufacturing expo manufacturers is expanding, and the association has lowered its expectations. Dave Anderson, president of SEMI North America, who held a press conference, stressed that “still at the third highest level in history”, but the industry is filled with stagnant atmosphere.

The latest forecast released by SEMI shows that all regions except Taiwan and the United States are expected to decline year-on-year. In particular, South Korea, where memory giants Samsung and SK Hynix are located, has seen a significant electronics manufacturing expo decline. Therefore, in 2019, the Taiwan region is expected to become the largest market for 23% of semiconductor manufacturing equipment sales.

Global sales of semiconductor manufacturing equipment in 2020 are estimated at $58.8 billion. Due to the recovery in memory electronics manufacturing expo investment and the construction and expansion of factories in mainland China, it is expected to increase by 12% compared to 2019. SEMI predicts that by 2020, sales to mainland China, including foreign-funded factories, will reach $14.5 billion. China is expected to become the largest market for semiconductor manufacturing equipment.

The above prediction was made on July 9th at the Semiconductor Equipment Annual Conference "SEMICONWEST", which opened in San Francisco, USA. Relevant responsible electronics manufacturing expo persons commented on Japan's strengthening of export control of semiconductor materials in South Korea, saying that "(for semiconductor manufacturing equipment demand) may have little impact."

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