Wednesday, September 13, 2006
Quick Alert: Semi CapEx Spending to Fall 13%
via EETimes:
SAN JOSE, Calif. — While the outlook for semiconductors has improved for 2007, capital spending is expected to fall next year, warned an analyst.Worldwide capital spending in the industry was $42 billion in 2005, down 8.5 percent from 2004, according to Semico Research Corp.
In 2006, capital spending is expected to hit $51 billion, up 21.1 percent from 2005, said Joanne Itow, an analyst with Semico. But in 2007, capital spending is expected to drop by 13.5 percent to $44 billion, Itow said during a recent presentation.
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This is kind of weird since Capex always increases during a recession because it makes sense that you don't want to hire people but you do want to increase your productivity with the folks you have (at least that's what they told me in B-school - one of the few things I remember). If there is no recession coming then that is good news.
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