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Equipment sales set to slow

Sales of semiconductor capital equipment are projected to reach $43.7billion this year, a 4.1% increase over 2006. But the growth is slowing, says market researcher Gartner, which expects next year’s spend to be flat

“A competitive investment race among dram vendors that did not abate –contrary to common sense, despite rampant overcapacity – combined with an accelerated retooling with more cost effective 300mm capacity, fuelled a strong first half that is tailing over into the second half of the year,” said Dean Freeman, research vice president for Gartner’s semiconductor manufacturing group. “The stronger 2007 is borrowing from 2008, and the second half softening will have ramifications on growth in the coming years.”

Graham Pitcher

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