14 December 2011 Semiconductor manufacturers to cut capital investment in 2012 Semiconductor manufacturers are predicted to spend $51.7billion on capital equipment in 2012, almost 20% lower than the projected spend in 2011, according to analyst Gartner. Gartner expects the slowdown to last for the first half of 2012, by which time it believes supply and demand should be in balance with the semiconductor market. Once that position is reached, Gartner says dram manufacturers and foundries will need to begin to boost their investment in order to be prepared for increased demand as markets rebound. As a consequence, Gartner believes capital spending in 2013 will increase by 19.2% to $61.6bn. According to Klaus Rinnen, Gartner's managing vp: "Natural disasters and the economy have certainly impacted the semiconductor capital equipment market in 2011, but we expect equipment spending to increase 13.7% in 2011. However, equipment providers will not be as lucky in 2012; the impact of the slowing macro economy, high inventories and a sluggish pc industry – due to both weak demand and the flooding in Thailand – will temper the outlook for 2012." Author Graham Pitcher Comment on this article Websites http://www.gartner.com Companies Gartner Ltd This material is protected by MA Business copyright See Terms and Conditions. One-off usage is permitted but bulk copying is not. For multiple copies contact the sales team. What you think about this article: Add your comments Name Email Comments Your comments/feedback may be edited prior to publishing. Not all entries will be published. Please view our Terms and Conditions before leaving a comment.