1st fall in 6 yrs likely for FY 2008 sales of chip-making equipment

Sales of semiconductor production equipment in Japan are expected to decrease in fiscal 2008 for the first time in six years after setting an all-time high in fiscal 2007 ended in March, an industry body said Thursday.

Sales for fiscal 2008 are projected at 949.4 billion yen, down 11.2 percent from the previous year, as chipmakers, such as those producing dynamic random access memory chips, are cutting back on capital spending amid falling prices, the Semiconductor Equipment Association of Japan said.

The projection is in stark contrast with a 4.4 percent increase in sales in fiscal 2007 to a record high of 1,069.4 billion yen.

The association is forecasting a sales increase of 2.2 percent to 970.6 billion yen in fiscal 2009 and a 5.3 percent gain to 1,022.1 billion yen in fiscal 2010.