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IC Insignts predicts IC CAPEX increase


Tuesday, June 13, 2006 Market researcher IC Insights Inc. has increased its semiconductor capital spending forecast for 2006, but the firm also said that expenditures are projected to de-accelerate this year.

In total, worldwide capital spending is expected to hit $51.3 billion in 2006, up 12 percent over 2005, according to IC Insights. The new forecast is slightly above its previous prediction, which was at 10 percent, according to the firm.

Intel Corp. remains the biggest spender at $6.6 billion in 2006, followed by Samsung Electronics Co. Ltd. at $5.7 billion, according to IC Insights.

IC Insights did not change its overall semiconductor forecast, which calls for 8-to-10 percent growth in 2006. The new capital spending forecast is due in part to increased expenditures among Japanese chip makers.

In 2006, capital spending is expected to go from $11.7 billion in Q1, to $12.5 billion in Q2, to $13.3 billion in Q3, to $13.8 billion in Q4, according to IC Insights.

By: DocMemory
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