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Article: Why capital spending matters: the results usually include increased capacity and lower chip prices.
- Article from:
- Purchasing
- Article date:
- July 14, 2005
- Author:
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Capital spending by semiconductor companies will fall 5% in 2005, although most chip companies had strong revenue growth in 2004. Less capital investment in fabs and process technology means that prices for some components could rise in the future because there may not be enough capacity to meet rising demand.
While capital spending by the semiconductor industry will decline, market researcher IC Insights forecasts capital spending by the top 25 semiconductor companies will actually increase by about 3% in 2005 and those companies represent about 85% of all capital spending. Capital expenditures (capex) by all chip companies totaled $45.77 billion in 2004, a 41% ...