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Home » Market Update » Semiconductor 2020 investment – 3% decline

Worldwide capex spending on semiconductor manufacturing is estimated to decline by only 3% Y-on-Y, says semiconductor market research company IC Insights.

IC Insights believes that most major semiconductor companies will try to remain with current capital expenditure plans in 2020, despite the Covid-19 pandemic, but they admits this forecast may be revised downwards.

“If the Covid-19 outbreak is not contained in the first half of this year, significant cuts to current capital spending budgets will likely occur,” IC Insights said.

Combined spending from the three memory giants – Samsung, SK Hynix and Micron – was $39.7 billion in 2019 and is forecast to be $33.6 billion this year, down 15 percent.  In contrast, the other semiconductor manufacturers had combined outlays of $62.6 billion in 2019 and are expected to spend $65.4 billion in 2020, a 4 percent increase. For 2020, the foundry segment is once again expected to show the largest growth for spending with an 8 percent increase.

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