Semiconductor Market to Grow by 6% and Equipment by 8%

    VLSIresearch CEO, G Dan Hutcheson, reported that the company expects robust growth for the semiconductor industry this year in a presentation given at SEMIís ISS conference. ISS is one of the premier conferences of the industry. Each year in January, hundreds of senior semiconductor industry executives from around the world descend on the small coastal town of Half Moon Bay, California to discuss forecasts and trade views on what the year will bring. The gathering brings the first light to the dark winter days before Christmas when all the electronics are put on retailerís shelves in hopes of being sold. 2017 was no different and the predictions were good for the coming year.


    Hutcheson was bullish for 2017 because wafer fab capacity utilization came out of 2016 in a healthy state, averaging 89% for the year. This was driven by growth in IC units that was significantly higher than revenues. This is expected to continue into this year driving growth of 5% in the WFE market, 3% in Package Assembly Equipment, and 2% in Test. Another reason for his optimisim what the 13 Week moving average of year-over-year semiconductor growth showed a clear bottoming early in 2016, which VLSI had reported in April of last year. It noted in its Industry Weather Report that conditions were hot with a thermometer reading of well over 30 degrees C as the year came to an end.

    For 2017, the key drivers and pivot points are seen to be DRAM coming back on strong pricing, Flash memory continuing to ride the SSD wave, MPU rising to the cloud, along with plenty of other industry drivers like Auto, CIoT (Connected IoT) and more. Though he did tell a cautionary story around the impact of IoT. Hutcheson concluded with the warning that while the infamous silicon cycle had clearly moderated for semiconductors over the past decade or so, it had gotten substantially worse for suppliers of semiconductor equipment. To moderate that, Hutcheson reported that changes were afoot in the industryís supply chain.

    To see Hutchesonís presentation in its entirety, click here:

    Filename: VR_Forecast_ISS_170118

    The source of this data came from analysis published in VLSIís The Chip Insiderģ report. More information is available here:

    The source of this data came from analysis published in VLSIís ForecastPro report. More information is available here:


    The source of this data came from analysis published in VLSIís Semiconductor Analytics report. More information is available here:


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