Semiconductor equipment revenue to drop 12% in 2005.(CHIP EQUIPMENT)(Brief Article)

Purchasing, August, 2005

Worldwide semiconductor capital equipment sales are on pace to decline about 12% to $33.1 billion in 2005, according to a new Gartner study. The researcher says all segments of the semiconductor capital-equipment market are projected to decline in 2005. "While the first quarter of 2005 marked the peak of the last upcycle, declining orders over the past few months and quarters paint a picture of slower sales for the rest of the year," says Klaus Rinnen, research vice president for Gartner's semiconductor manufacturing and design research group.

Rinnen says last year equipment sales increased sharply to correct a serious underinvestment in equipment in the face of strong semiconductor demand. Now production capacity exceeds demand, and equipment...

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