The global market for automated test equipment (ATE) is expected to see modest growth in 2013 and 2014, but will likely start to cycle down in 2015, according to Advantest Taiwan president CH Wu.

Chipmakers have stepped up their pace of equipment buying since 2012 to meet a surge in demand for handheld mobile devices, but will likely slow down their purchases in 2015 following three consecutive years of facility expansion, Wu indicated.

The market for handheld mobile devices will continue to expand but at a slower pace in 2014, Wu noted. Wu also commented that he does not expect to see a killer app to replace smartphones and other wireless devices until after 2015.

The total communications IC market has grown at a rapid pace thanks to surging smartphone shipments, and is set to pass the total computer IC market for the first time in 2013, market research firm IC Insights said in a June 2013 report.

In addition, Wu observed that capacity utilization in the semiconductor industry started to fall in June-July, and therefore chipmakers have turned cautious about capex and postponed equipment purchases. However, conditions should improve in the second quarter of 2014, which will then stimulate demand for semiconductor equipment in the second half of the year, Wu believes.

Advantest is currently the world's largest ATE provider. According to VLSI Research, Advantest held a 52% share of the global ATE market in 2012, and had a 53% market share in the SoC test equipment sector.

By: DocMemory
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