Global chip spending will increase by 22% this year

The Semiconductor Equipment and Materials Industry Association (SEMI) predicts that global chip manufacturing project spending will increase by 22% this year, while chip manufacturing equipment spending will increase by 28%.

SEMI analyst Christian Greige Diesseldorf said: “The chip factory construction spending in 2011 will eventually exceed the record high of 46.4 billion U.S. dollars in 2007.” SEMI expects that as the chip company upgrades its existing factory In order to avoid overcapacity and oversupply, chip and chip equipment project spending in 2011 will be close to 47.2 billion US dollars, an increase of about 9 billion US dollars over last year. Intel, the chip industry leader, has increased its capital expenditure budget this year from 5.2 billion U.S. dollars in 2010 to 9 billion U.S. dollars.

Other chip makers include BroADCom, AMD, Qualcomm and Nvidia. US chip equipment manufacturers have application materials, KLA Tencor and Lam Research.

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