Gartner is warning that worldwide wafer fab equipment spending is on pace to total $33 billion in 2012 which is a decline of 8.9 percent from 2011.
Gartner analysts warned that this is a sign of an industry in downturn and said the market will return to growth in 2013 with WFE spending projected to surpass $35.4 billion, a 7.4 percent increase from 2012. Bob Johnson, research vice president at Gartner said 2012 spending was strong at the beginning of the year, as foundries and other logic manufacturers ramped up sub-30-nm production.
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iSuppli is reporting that global chip revenue should increase to $325.2 due to supply and demand. Two months ago iSuppli originally forecasted a 5.8 percent increase to $320.1 billion. Apparently, DRAM chips will be impacted the most with a price increase due to supply issues as a result of the recent earthquake in Japan. iSuppli had originally forecasted sales of DRAM chips to shrink by four percent this year instead of seeing a drop of 10.6 percent.
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