More Fab Equipment

Semiconductor equipment sales are on the increase according to SEMI. Total spending on fab projects is estimated as $47.2 billion this year, above the estimated $38.6 billion spent in 2010 and will finally exceed the peak of $46.4 billion set in 2007. Interestingly, companies are reported as being aware of the dangers of creating an oversupply situation and are putting much of the spending into upgrading existing facilities. Some companies will spend record amounts in 2011. For example, Intel is expected to increase its capital spend from $5.2 billion in 2010 to $9.0 billion in 2011. SEMI also note that in 2010 34 new volume fabs began construction with most of them for LED fabrication.