Semiconductor Capital Spending Market in the US 2015-2019

January 06, 2016
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IRTNTR7795
This report by Technavio fragments the semiconductor capital spending market in the US by type, including wafer fab equipment, die-level packaging and assembly equipment, automated test equipment, wafer-level packaging and assembly equipment, and others. The top key vendors in the market include Global Foundries, Intel, Micron, Samsung Electronics, and SK Hynix.

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.

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
  • Others

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.

Competitive landscape and key vendors

The competition in the semiconductor capital spending market in the US is rigid. And the main reason for such intense completion is the evolution of technology. With the pace of technological advancements in the US market, vendors are involved in substantial capital spending, hence, the market comprises of players with strong technological proficiency.

Key vendors in this market are -

  • Global Foundries
  • Intel
  • Micron
  • Samsung Electronics
  • SK Hynix

Other prominent vendors included in this report are AMD, Analog Devices, Broadcom, Freescale, Semiconductor, Marvell Technologies, Qualcomm, and Texas Instruments.

Growth drivers, challenges, and upcoming trends:

Technavio also highlights various trends affecting the semiconductor capital spending market in the US, and one such trend is the rise in China's semiconductor industry. Even though, there are a large number of local semiconductor components manufacturers in China, more than 80% of the semiconductor requirements in China is fulfilled by US semiconductor companies, such as Intel and Global Foundries.

This report provides a number of factors contributing to the adoption, limitations, and opportunities of the semiconductor capital spending market in the US. It also offers an analysis of each factor and an estimation of the extent to which the factors are likely to impact the overall market growth.

Key questions answered in the report include

  • What will the market size and the growth rate be in 2019?
  • What are the key factors driving the semiconductor capital spending market in the US?
  • What are the key market trends impacting the growth of the semiconductor capital spending market in the US?
  • What are the challenges to market growth?
  • Who are the key vendors in the semiconductor capital spending market in the US?
  • What are the market opportunities and threats faced by the vendors in the semiconductor capital spending market in the US?
  • What are the key outcomes of the five forces analysis of the semiconductor capital spending market in the US?

Technavio also offers customization on reports based on specific client requirement.

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