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Capital spending by chip industry to drop

PUBLISHED : August 08, 2017 - 15:05

UPDATED : August 08, 2017 - 15:05

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[THE INVESTOR] Global chipmakers’ facility investment is expected to shrink in 2018 after posting double-digit growth this year, an industry tracker said on Aug. 8.

In its latest market report, Gartner predicted the global semiconductor industry’s capital spending to surge 10.2 percent on-year to US$77.79 billion this year.

Despite an estimated 1.4 percent gain for the second quarter, Gartner revised up the full-year forecast sharply amid a continued rise in demand and prices, which focused on NAND flash memory chips.

By sector, investments in wafer fabrication are projected to soar 17.9 percent on-year to US$43.66 billion this year, with spending on remaining areas likely to gain 1.8 percent.

Gartner, however, forecast the industry’s investment in new plants and equipment to swing to a contraction in 2018 and the next year.

The chip industry‘s capital expenditures are likely to drop 0.5 percent on-year to US$77.44 billion in the coming year, with the amount sinking 7.3 percent on-year to US$71.81 billion the next year.

By Alex Lee and newswires (alexlee@heraldcorp.com)

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