Thanks to strong growth in Mainland China and Taiwan, the semiconductor equipment market grew 52.7 percent to $33.9 billion in 2004, according to the latest research from The Information Network, a New Tripoli, Pa.-based market research company.

Equipment sales in mainland China grew 146.1 percent in 2004 to $2.83 billion over $1.15 billion in 2003, while sales in Taiwan increased 124 percent in 2004 to reach $6.65 billion over $2.93 billion in 2003. Japan led the industry with $7.51 billion in equipment sales in 2004, up 35.3 percent over $5.55 billion in 2003. Equipment sales to Japan represented 22.2 percent of all purchases last year.

Indicative of the movement to offshore manufacturing, the 2004 North American market grew the least at only 10.8 percent to $5.24 billion in 2004 from $4.73 billion in 2003. The Rest of World market region, which includes equipment sales in Singapore, Malaysia, and other markets, grew 92.1 percent to $4.03 billion from $2.10 billion in 2003.

This year, the firm expects worldwide sales of semiconductor equipment to drop by 9.4 percent to $30.7 billion.

Commenting on the results, Dr. Robert Castellano, president of The Information Network said in a statement, “Semiconductor manufacturers will need to absorb $4.43 billion in excess equipment purchases in 2004, which drove capacity utilization to the mid-80 percent range in Q4, and will result in a 9.4 percent drop in revenues in 2005.

“Nevertheless, the total market of $30.7 billion will still be 38.4 percent higher than 2003,” he concluded

By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved