An updated survey of 2005 spending budgets for 46 major semiconductor manufacturers now shows total chip industry capital expenditures being flat this year versus $45.7 billion in 2004, according to IC Insights.

Previously, the research firm projected that semiconductor capital would fall by 1 percent in 2005.

In 2006, IC Insights believes that semiconductor industry spending will be flat or slightly down from 2005. Previously, it projected a 9 percent decline in capital expenditures in 2006.

¡§After sharp swings in quarterly expenditures during the first half of 2005, semiconductor capital spending trends appear to be moderating and holding relatively steady in the final six months of this year,¡¨ according to IC Insights.

¡§In the first half of 2005, industry capital spending sequentially grew 12 percent in 1Q05, compared to 4Q04, but then plunged 19 percent in 2Q05,¡¨ the firm said. ¡§Planned outlays now show capital spending sequentially declining 3 percent in 3Q05 and down another 2 percent in 4Q05, resulting in a flat year for total expenditures."

By: DocMemory
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