UMS Holdings

[Boon]

Equipment Spending Shows Strong Growth for 2014 and 2015; Slow Capacity Additions

SAN JOSE, Calif. — September 9, 2014 — Front End fab equipment spending (including new, used, and in-house) is projected to increase up to another 20 percent in 2015 to US$ 42 billion, according to most recent edition of the SEMI World Fab Forecast. In 2015, equipment spending could mark a historical record high, surpassing the previous peak years of 2007 ($39 billion) and 2011 ($40 billion). In 2014, the report predicts growth of approximately 21 percent for Front End fab equipment spending, for total spending of $34.9 billion.

Seven companies are expected to spend $2 billion or more in 2014, representing almost 80 percent of all fab equipment spending for Front End facilities; a similar pattern is expected in 2015. About 90 percent of all equipment spending is for 300mm fabs.

According to the World Fab Forecast, in 2014, the five regions with the highest forecast spending on equipment are: Taiwan ($9.7 billion), Americas ($7.8 billion), Korea ($6.8 billion), China ($4.6 billion), and Japan ($1.9 billion). In 2015, the same regions will lead: Taiwan ($12.0 billion), Korea ($8.0 billion), Americas ($7.9 billion), China ($5.0 billion), and Japan ($4.2 billion). Spending in Europe is expected to nearly double (from 2014 to 2015) to $3.8 billion.

As Figure 1 illustrates, before the last economic downturn, most equipment spending was for new additional capacity. SEMI reports that in 2010 and 2011, fab equipment spending growth rates increased dramatically, but installed capacity grew by only 7 percent in both years. In 2012 and 2013, installed capacity grew 2 percent or less. Some industry segments, such as foundries, see continuous capacity expansion, while other segments show much lower growth — pulling down the total global growth rate for installed capacity to below the 3 percent mark.................................................

http://www.semi.org/en/node/51346?id=highlights
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TSMC reports record high revenues for August

Josephine Lien, Taipei; Steve Shen, DIGITIMES [Wednesday 10 September 2014]

Taiwan Semiconductor Manufacturing Company (TSMC) has announced record high revenues of NT$69.28 billion (US$2.31 billion for August 2014, an increase of 6.7% from the previous month and 25.8% from a year earlier. The August figures met the company's guidance and market expectations.

Accumulated revenues for January through August 2014 totaled NT$465.44 billion, an increase of 17.6% from a year earlier.

TSMC has estimated its third-quarter revenues will reach NT$206-209 billion, increasing 12.6-14.2% from a quarter earlier.

http://www.digitimes.com/news/a20140910PB202.html

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