Another Negative Year for Semiconductor CapEx
by Bill Jewell
Published on 09-29-2013 09:00 PM
Global semiconductor capital spending is headed for another decline in 2013, following a 12% decline in 2012. Gartner’s September forecast called for a 7% decline in 2013. Most of the major spenders expect flat to declining expenditures in 2013. Intel in July estimated 2013 spending of $11 billion, flat with 2012 and down from its April forecast of $12 billion. Samsung expects a 4% decline in 2013 spending compared to its April estimate of flat. The two largest foundry companies expect strong growth in 2013 capital spending. TSMC stated in January it planned 2013 spending of $9.5 billion to $10.0 billion, up 14% to 20% from a year ago. GlobalFoundries estimated an 18% increase in spending.....
That's good news for INTC shareholders. Intel is several years ahead of other foundries and it's smart to slow down a bit. The others should be spending more but their margins are pisspoor so they can't afford it. And that's a good thing for us INTC longs.