Source AP ©

Chip-equipment spending to be flat in 2008

Makers of semiconductor manufacturing equipment can extend well into next year.

Gartner cut its 2008 global spending outlook for chip equipment to $43.7 billion (30.79 billion EUR), down 4.3 percent from its mid-July forecast of $45.7 billion (32.19 billion EUR). Based on its present spending estimate for 2007, chip-equipment spending would be flat in 2008.

The researcher previously anticipated spending would increase 6.2 percent year-over-year.

Gartner said spending on machines to make computer memory will drop, while flash makers and third-party chip contractors will order more equipment.

The market for equipment that makes computer memory has faced an inventory glut this year, sparking a steep decline in average selling prices for the memory chip widely used in personal computers. South Korean Hynix Semiconductor Inc., the world's No. 2 producer by sales in that market, said this week that it stopped supplying the chips to the open market in a bid to shore up plummeting prices.

Signs are emerging that chip makers are planning to spend less in 2008.

Micron Technology Inc., the world's No. 5 maker of computer memory equipment by total sales, said Tuesday that its 2008 capital expenditure budget would be $2.5 billion (1.76 billion EUR), down from $4 billion (2.82 billion EUR) in fiscal year 2007.

Gartner also revised its total semiconductor capital spending forecast for 2008 to $54.6 billion (38.46 billion EUR), down from $59.3 billion (41.78 billion EUR).

Comments
Kim Jong-un's dream comes true as his armoured train arrives in Russia
Sri Lanka: Blood on the New Silk Road
Sri Lanka: Blood on the New Silk Road
Kim Jong-un and Vladimir Putin find common language in Vladivostok
Russia and NATO terminate cooperation in military and civil areas completely
Declaration of Florence: For an International Front NATO Exit
Ilhan Omar: Challenging Establishment Politics in Washington
Russia and NATO terminate cooperation in military and civil areas completely
Kim Jong-un and Vladimir Putin find common language in Vladivostok
Russia and NATO terminate cooperation in military and civil areas completely
Ilhan Omar: Challenging Establishment Politics in Washington
America's choice: a party of criminals or a party of cowards
America's choice: a party of criminals or a party of cowards
Longstanding US Russia Bashing
Kim Jong-un's dream comes true as his armoured train arrives in Russia
America's choice: a party of criminals or a party of cowards
Kim Jong-un's dream comes true as his armoured train arrives in Russia
NATO wants no S-400 systems in Turkey as Turks have F-35 fighters
America's choice: a party of criminals or a party of cowards
Russia and NATO terminate cooperation in military and civil areas completely
Russia and NATO terminate cooperation in military and civil areas completely