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Will 2014 Be the Year of the Semiconductor Industry?

The semiconductor industry is abuzz about the year 2014 as early forecasts predict that revenue will grow by approximately 8 percent. Due to this projection as well as improvements in the marketplace, semiconductor manufacturing companies have begun making adjustments to capital expenditure.

One area that is expected to experience a lot of growth is fab equipment, including new, used and in-house. Spending on fab equipment is projected to increase by 25 percent, reaching unprecedented levels. While fab equipment is traditionally the highest area of spending by the semiconductor manufacturing industry, there was a downturn in the years 2011 and 2012. Companies were in the process of consolidation and movement of memory capacity into other systems, and the economy wasn’t in the best state, leading to the decline in spending on fab equipment. For this reason, the semiconductor industry is especially excited about the predictions for fab equipment next year.

The largest growth rate for fab equipment spending will occur in the Flash sector with a predicted increase of 40 to 45 percent, totaling approximately $8 billion. While the capacity of Flash sectors has halted in recent years due to concerns about overproduction and price collapse, there has been a rebound in the capacity in the second half of this year, and it is predicted to run through 2014. There is research available that anticipates liberal spending in DRAM and Flash by a number of large companies.  For example, Micron is expected to commit half of its capital expenditure to DRAM.

In addition to DRAM and Flash, MPU is another area that is expected to experience significant growth. Like with other areas of fab equipment, MPU spending did fall over the last few years, but it is expected to rebound. One of the companies that is making a push for MPU in the year 2014 is Intel, which is preparing for the launch of 14nm.

Due to the anticipated increases in revenue and unprecedented spending on fab equipment mentioned above, the semiconductor manufacturing industry is preparing for a very good year. Included in these preparations is the implementation of new semiconductor devices and materials in business operations. If you are interested in improving your operations with high quality semiconductor devices to meet demand anticipated for 2014, trust in the semiconductor manufacturing experts at Shin-Etsu MicroSi. Our team consists of highly skilled and knowledgeable developers and manufacturers of silicones, thermal conductive greases, synthetic quartz and other specialty products for use in the semiconductor industry. To learn more about semiconductor devices and materials for your operations, call Shin-Etsu MicroSi at (480) 893-8898 or contact us online.