Huge 2H16 Spending Surge Expected From Samsung, TSMC, and Intel
August 8, 2016 | IC InsightsEstimated reading time: 1 minute
IC Insights forecasts that semiconductor industry capital spending will increase by only 3% this year after declining by 2% in 2015. However, driven by the top three spenders—Samsung, TSMC, and Intel—capital spending in 2016 is expected to be heavily skewed toward the second half of this year. Figure 1 shows that the combined 2016 outlays for the top three semiconductor industry spenders are forecast to be 90% higher in the second half of this year as compared to the first half.
Combined, the “Big 3” spenders are forecast to represent 45% of the total semiconductor industry outlays this year. An overview of each company’s actual 1H16 spending and their 2H16 spending outlook is shown below.
Samsung — The company spent only about $3.4 billion in capital expenditures in 1H16, just 31% of its forecasted $11.0 billion full-year 2016 budget.
TSMC — Its outlays in the first half of 2016 were only $3.4 billion, leaving $6.6 billion to be spent in the second half of this year in order to reach its full-year $10.0 billion budget. This would represent a 2H16/1H16 spending increase of 92%.
Intel — Spent just $3.6 billion in 1H16. The company needs to spend $5.9 billion in the second half of this year to reach its current $9.5 billion spending budget, which would be a 2H16/1H16 increase of 61%.
In contrast to the “Big 3” spenders, capital outlays by the rest of the semiconductor suppliers are forecast to shrink by 16% in the second half of this year as compared to the first half. In total, 2H16 semiconductor industry capital spending is expected to be up 20% over 1H16 outlays, setting up a busy period for the semiconductor equipment suppliers through the end of this year.
Suggested Items
Guerrilla RF Completes Strategic Acquisition of GaN Device Portfolio from Gallium Semiconductor
04/29/2024 | BUSINESS WIREGuerrilla RF, Inc. has finalized the acquisition of Gallium Semiconductor's entire portfolio of GaN power amplifiers and front-end modules. Effective April 26th, 2024, GUER acquired all previously released components as well as new cores under development at Gallium Semiconductor.
SIA Commends CHIPS Act Incentives for Micron’s Manufacturing Projects in New York and Idaho
04/29/2024 | SIAThe Semiconductor Industry Association (SIA) today released the following statement from SIA President and CEO John Neuffer applauding semiconductor manufacturing incentives announced by the U.S. Department of Commerce and Micron.
iNEMI Packaging Tech Topic Series: Role of EDA in Advanced Semiconductor Packaging
04/26/2024 | iNEMIAdvanced semiconductor packaging with heterogenous integration has made on-package integration of multiple chips a crucial part of finding alternatives to transistor scaling. Historically, EDA tools for front-end and back-end design have evolved separately; however, design complexity and the increased number of die-to-die or die-to-substrate interconnections has led to the need for EDA tools that can support integration of overall design planning, implementation, and system analysis in a single cockpit.
SMC Korea 2024 to Highlight Semiconductor Materials Trends and Innovations on Industry’s Path to $1 Trillion
04/24/2024 | SEMIWith Korea a major consumer of semiconductor materials and advanced materials a key driver of innovation on the industry’s path to $1 trillion, industry leaders and experts will gather at SMC (Strategic Materials Conference) Korea 2024 on May 29 at the Suwon Convention Center in Gyeonggi-do, South Korea to provide insights into the latest materials developments and trends. Registration is open.
Aaron Woolf, Dylan Peterson Join SIA Team
04/22/2024 | SIAThe Semiconductor Industry Association (SIA) announced Aaron Woolf and Dylan Peterson have joined the SIA team. Woolf will serve as director of global policy for economic security and Peterson will be a communications associate. SIA represents 99% of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip firms.