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SEMI 2019 Mid-Year Total Equipment Forecast - 2019 Market Reset With 2020 Recovery
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SAN FRANCISCO, July 10, 2019 /PRNewswire/ --  Global sales of semiconductor manufacturing equipment by original equipment manufacturers are projected to drop 18.4 percent to $52.7 billion in 2019 from last year's historic high of $64.5 billion, SEMI, the global industry association representing the electronics manufacturing and design supply chain, reported today in its Mid-Year Total Equipment Forecast.

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Released at SEMICON West 2019, the forecast shows growth in equipment sales resuming in 2020, with an 11.6 percent jump to $58.8 billion. The current forecast reflects recent downward adjustments in capital expenditures and rising market uncertainty due in part to geopolitical tensions.

The SEMI Mid-Year Forecast shows wafer processing equipment sales falling 19.1 percent in 2019 to $42.2 billion. The other front-end segment, consisting of fab facilities equipment, wafer manufacturing, and mask/reticle equipment, is expected to slide 4.2 percent to $2.6 billion this year. The assembly and packaging equipment segment is on track to decline 22.6 percent to $3.1 billion in 2019, while semiconductor test equipment is forecast to decrease 16.4 percent to $4.7 billion this year.

Taiwan will dethrone Korea as the largest equipment market and lead the world with 21.1 percent growth this year, followed by North America with an 8.4 percent uptick. China will maintain the second spot for the second consecutive year, and Korea will fall to third after throttling back capital expenditures. All regions tracked except Taiwan and North America will contract this year.

SEMI forecasts that, in 2020, the equipment market is expected to recover on the strength of memory spending and new projects in China. Equipment sales in Japan will surge 46.4 percent to $9.0 billion. China, Korea, and Taiwan are forecast to remain the top three markets next year, with China rising to the top for the first time. Korea is forecast to become the second largest market at $11.7 billion, while Taiwan is expected to reach $11.5 billion in equipment sales. More upside is likely if the macroeconomy improves and trade tensions subside in 2020.

The Mid-Year Total Equipment Forecast is based on SEMI's industry-recognized World Fab Forecast database and input from equipment manufacturers. Total equipment includes wafer processing, other front end, total test, and assembly and packaging equipment.

The Equipment Market Data Subscription (EMDS) from SEMI provides comprehensive market data for the global semiconductor equipment market. A subscription includes three reports: the monthly SEMI Billings Report, which offers an early perspective of the trends in the equipment market; the monthly Worldwide Semiconductor Equipment Market Statistics (SEMS), a detailed report of semiconductor equipment bookings and billings for seven regions and over 22 market segments; and the SEMI Mid-Year Forecast, which provides an outlook for the semiconductor equipment market.

For more information or to subscribe, please contact SEMI customer service at 1.877.746.7788 (toll free in the U.S.). For more information online, please click here.

About SEMI
SEMI ® connects  more than 2,100  member companies and 1.3 million  professionals worldwide  to  advance the technology and business of electronics design and manufacturing. SEMI members are responsible for the innovations in materials, design, equipment, software, devices, and services that enable smarter, faster, more  powerful, and more affordable electronic products.  Electronic System Design Alliance (ESD Alliance), FlexTech, the Fab Owners Alliance (FOA)  and the  MEMS  & Sensors Industry Group (MSIG) are SEMI Strategic Association Partners,  defined communities within  SEMI  focused on specific technologies. Visit www.semi.org  to  learn  more, contact one of our worldwide offices,  and connect with SEMI on  LinkedIn  and  Twitter.

Association Contact
Michael Hall/SEMI
Phone: 1.408.943.7988
Email: mhall@semi.org

SEMI ® connects 2,000+ member companies and 1.3 million professionals worldwide to advance the technology and business of electronics manufacturing. SEMI members are responsible for the innovations in materials, design, equipment, software, devices, and services that enable smarter, faster, more powerful, and more affordable electronic products. SEMI builds connections that help its members prosper, create new markets, and address common industry challenges together. Visit http://www.semi.org

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