Semiconductor device market headed for sustained growth in 2015, says SEMI

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KUALA LUMPUR (April 10): The global semiconductor device market is headed for sustained growth this year, riding on the strong revenue growth last year, according to the US-based Semiconductor Equipment and Materials International (SEMI).

In a review of 2014 released in its Global Update on April 7, SEMI senior marker analysts Lara Chamness said 2014 was the second record breaking year in a row in terms of semiconductor device revenues.

She said the industry grew a robust 10% to total US$336 billion, citing the World Semiconductor Trade Statistics (WSTS).

Chamness said the strong momentum of the device market was enough to drive positive growth for both the equipment and materials markets.

“After two successive years of revenue decline, both the equipment and materials markets grew 18% and 3%, respectively last year.

“Even though the semiconductor materials market did not enjoy the same magnitude of recovery as the equipment market last year, the materials market has been larger than the equipment for the past seven years,” she said.

Chamness said worldwide sales of semiconductor manufacturing equipment totaled US$37.5 billion in 2014, representing a year-over-year increase of 18% and placing spending on par with 2004 levels.

Chamness said most analysts predict mid- to high single-digit growth for the semiconductor device market for 2015.

She said initial monthly data for silicon shipments and semiconductor equipment are proving to be encouraging.

“In light of growth expectations for the device market, SEMI projects that the semiconductor materials market will increase 4% this year.

“Given current CapEx announcements, the outlook for semiconductor equipment is optimistic as well, with current projections of the equipment market showing another year of growth, which would place the equipment market on par with the last market high set in 2011,” she said.

Chamness said 2014 was a much welcomed year for equipment and materials suppliers as device manufacturers easily exceeded revenues of US$300 billion.

She said that even with the weakened Japanese Yen, both the semiconductor and equipment segments experienced growth.

“2015 is promising to be another growth year for the entire market with device, materials and equipment suppliers poised to experience increases for the year,” she said.