US Semiconductor Capital Spending Market to Multiply Speedily with a CAGR of Close to 9% by 2019

SAN JOSE, CA - MARCH 23: Semiconductors are seen on a circuit board that powers a Samsung video camera at the Samsung MOBILE-ization media and analyst event on March 23, 2011 in San Jose, California. As a result of the deadly earthquake and tsunami in Japan, at least a quarter of the world's production of silicon wafers that are used for making semiconductors has been halted. (Photo by Justin Sullivan/Getty Images)

Market outlook of the semiconductor capital spending market in the US
Semiconductors are the basic component for any electronic component. Semiconductor technology is continuously growing with emergence of advanced technology. Since the last decade, the most prominent segment in global semiconductor industry has been memory, logic, MPU and analog, which made up almost 75% of the total semiconductor demand. Technavio predicts the semiconductor capital spending market in the US to multiply rapidly with a CAGR of close to 9% during the forecast period.

The semiconductor capital spending market in the US is driven by numerous drivers, of which, the most prominent among of all is the accelerated capex in memory and foundry segments. Collectively, memory and foundry represent close to two-third of the total semiconductor capital spending market. With such accelerated capital investments on a global scale, the outcome will have a considerable impact on the semiconductor industry worldwide.

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Segmentation of the semiconductor capital spending market in the US by type
Wafer fab equipment
Die-level packaging and assembly equipment
Automated test equipment
Wafer-level packaging and assembly equipment

Wafer fab equipment segment constitutes the largest share of the overall market, accounting for a market share of more than 48% in 2014. Wafer fab equipment is mainly used during the first half of semiconductor’s manufacturing process that makes memory cells and transistors. It covers various patterning, deposition and cleaning process, till wafer passivation.

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