Semiconductor manufacturing capacity in 2011 is growing, a new report suggests.
The report ‘World Fab Watch: Details of Frontend Semiconductor Fabs for the Previous Quarter’ revealed increasing capital expenditure on electronic components such as semiconductors and connectors this year.
The report showed on the other hand that construction spending had decelerated this year and was expected to continue downwards in 2012.
The database tracks spending, capacity and technology node projects for every fab worldwide by company.
This spending covers both new and used equipment for production, pilot, and R&D fabs, including investments for LED device fabrication.
In 2011, it is forecast the industry will experience a 31 percent rise in equipment spending and nine percent rise in manufacturing capacity.
Equipment spending should reach an all-time high of about 44 billion dollars this year the research suggests, although the spending pace is expected to decline by six percent to 41 billion dollars in 2012. This still however, will remain the second highest annual level on record.
The earthquake in Japan on March 11th may have had some short-term effect on utilisation rates and capacity output, but will not have a significant impact on installed capacity on construction spending.
Installed capacity is expected to increase about nine percent in 2011 and seven percent in 2012. In 2010, the growth rate in capacity of Foundry fabs surpassed Memory fabs, and this trend is expected to continue in 2011.
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