Capex Wars Are Erupting

    The Chip Insider®

    Semiconductor Equipment Weather Report: May 20, 2021

    Andera Lati
    CapEx wars are erupting
    • Order activity for semiconductor equipment hovered at a sizzling 105 degrees with all segments staying firmly in triple-digit territory
    • The visibility horizon for equipment suppliers is stretching into 2022 with delivery and equipment availability being the only issues
    • While IC shortages still linger, we expect the tide to turn at the end of the year as chipmakers add more capacity to meet demand
    • Equipment forecast for 2021 has been upgraded from 21% to 31% due to a stronger than expected Q1, which has raised the bar even further for the rest of the year
    • CapEx has also been upgraded to 30% with most of the strength coming from Foundry/Logic segment
    • Electronics forecast for 2021 has been upgraded from 7% to 10%, following a huge Q1 where sales soared 29% on yearly basis
    • VLSI's Chip Price Performance continued to roll over
      • DRAM dropped
      • NAND rose
      • MPUs declined
    • Inventory to Billings ratio remains low as overall inventories edge higher
    CapEx wars are erupting

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