Fab Update: Change in Capital Spending

-- Semiconductor International, 12/1/2001

Key points

• Capital spending fell by 30% in 2001 to $42.9B.
• The best scenario for 2002 is that it will be flat. But, our regional analysis indicates that it will be down by 10%.
• Individual company plans will remain highly fluid until there are definite signs of a macroeconomic recovery from the current recession.
• Spending by North American companies will probably fall by >$3B.
• Assuming Hynix’s financial rescue, spending by South Korean companies could increase by ~$1B.
• Led by new startup foundries, spending by Chinese companies will increase by $600M.
• The increase in spending by Taiwanese companies is predicated on the equipping of 300 mm DRAM fabs, which could be delayed.

Strategic Marketing Associates is a market research company focusing on the fab. For information about capital spending and new fab projects, call Strategic Marketing Associates at 1-831-464-2669.