Sales of semiconductor manufacturing equipment are now expected to grow by nearly 36 percent in 2017, an increase from an earlier forecast that projected 20 percent growth, according to the SEMI trade association. The group expects sales to grow by another 7.5 percent next year.
SEMI said it now expects sales for fab tools to reach a record $55.9 billion this year, passing the $50 billion mark for the first time. The earlier forecast, issued in June, had predicted sales of $49.4 billion, which itself would have been a record.
This year's semiconductor equipment buying spree, fueled by capacity expansion and record chip sales, is expected to shatter the sales record set way back in 2000, at the height of the dot com bubble.
Sales of wafer processing equipment — the largest category of semiconductor equipment — are expected to grow by 37.5 percent to reach $45 billion, SEMI said. Sales of other front-end equipment, including mask and reticle inspection equipment, is expected to increase by 46 percent to reach $2.6 billion, SEMI said.
SEMI said it expects assembly and packaging equipment sales to grow 26 percent to reach $3.8 billion and test equipment sales to grow 22 percent to $4.5 billion.
South Korea remains on pace to become the largest geography for fab tool sales for the first time this year, SEMI said. Taiwan is expected to be the second largest geography, while China — where sales are expected to grow by 49 percent — is expected to be the third largest geography for sales, SEMI said.
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