Huge 2H16 Spending Surge Expected From Samsung, TSMC, and Intel
August 8, 2016 | IC InsightsEstimated reading time: 1 minute
IC Insights forecasts that semiconductor industry capital spending will increase by only 3% this year after declining by 2% in 2015. However, driven by the top three spenders—Samsung, TSMC, and Intel—capital spending in 2016 is expected to be heavily skewed toward the second half of this year. Figure 1 shows that the combined 2016 outlays for the top three semiconductor industry spenders are forecast to be 90% higher in the second half of this year as compared to the first half.
Combined, the “Big 3” spenders are forecast to represent 45% of the total semiconductor industry outlays this year. An overview of each company’s actual 1H16 spending and their 2H16 spending outlook is shown below.
Samsung — The company spent only about $3.4 billion in capital expenditures in 1H16, just 31% of its forecasted $11.0 billion full-year 2016 budget.
TSMC — Its outlays in the first half of 2016 were only $3.4 billion, leaving $6.6 billion to be spent in the second half of this year in order to reach its full-year $10.0 billion budget. This would represent a 2H16/1H16 spending increase of 92%.
Intel — Spent just $3.6 billion in 1H16. The company needs to spend $5.9 billion in the second half of this year to reach its current $9.5 billion spending budget, which would be a 2H16/1H16 increase of 61%.
In contrast to the “Big 3” spenders, capital outlays by the rest of the semiconductor suppliers are forecast to shrink by 16% in the second half of this year as compared to the first half. In total, 2H16 semiconductor industry capital spending is expected to be up 20% over 1H16 outlays, setting up a busy period for the semiconductor equipment suppliers through the end of this year.
Suggested Items
America Projected to Triple Semiconductor Manufacturing Capacity by 2032, the Largest Rate of Growth in the World
05/08/2024 | SIAThe Semiconductor Industry Association (SIA), in partnership with the Boston Consulting Group (BCG), released a report on the global chip supply chain that projects the United States will triple its domestic semiconductor manufacturing capacity from 2022—when the CHIPS and Science Act (CHIPS) was enacted—to 2032.
Real Time with… IPC APEX EXPO 2024: ASMPT and Technica's Successful Partnership and Future Plans
05/08/2024 | Real Time with...IPC APEX EXPONolan Johnson speaks with Frank Medina and Jeff Timms about the fruitful collaboration between ASMPT and Technica and the upcoming launch of a machine with enhanced capabilities. They also discuss partnerships with semiconductor firms, customer demo plans, and the significance of the demo center. The conversation highlights the potential in North America.
Q1 Global Semiconductor Sales Increase 15.2% YoY
05/07/2024 | SIAThe Semiconductor Industry Association (SIA) announced worldwide sales of semiconductors totaled $137.7 billion during the first quarter of 2024, an increase of 15.2% compared to the first quarter of 2023 but 5.7% less than the fourth quarter of 2023.
Worldwide Silicon Wafer Shipments Dip 5% in Q1 2024
05/07/2024 | SEMIWorldwide silicon wafer shipments decreased 5.4% quarter-over-quarter to 2,834 million square inches in the first quarter of 2024, a 13.2% drop from the 3,265 million square inches recorded during the same quarter last year, the SEMI Silicon Manufacturers Group (SMG) reported in its quarterly analysis of the silicon wafer industry.
ZESTRON Academy Launches 2024 Advanced Packaging & Power Electronics Webinar Series
05/01/2024 | ZESTRONZESTRON, the leading global provider of high-precision cleaning products, services, and training solutions in the electronics manufacturing and semiconductor industries, proudly announces the launch of its highly anticipated webinar series on Advanced Packaging & Power Electronics, a webinar series on the latest innovations, cleaning, and corrosion challenges.