Semiconductor suppliers earmark more capital spending in second half

By Park Sae-jin Posted : August 9, 2016, 13:11 Updated : August 9, 2016, 13:11

[Courtesy of Iclick]



The global semiconductor market is still reeling from weak demand but major players led by Samsung Electronics are forecast to spend more on facility investment in the second half of this year, according to a market survey published Tuesday.

Market researcher IC Insights said this year's total capital spending by Samsung, TSMC (Taiwan Semiconductor) and Intel would rise seven percent on-year to 30.5 billion US dollars.

In 2016, Samsung, the world's largest microchip producer, is forecast to spend $11 billion, down 15 percent from $13 billion a year ago.  Samsung actually spent only about $3.4 billion in capital expenditures in the first half of this year, but its second-half spending is forecast to reach $ 7.56 billion.

TSMC's first-half outlays were $3.4 billion, but IC Insights predicted the company is expected to spend $6.6 billion in the second half for a full-year budget of $10 billion, up 24 percent from a year ago.

Intel, which spent $3.6 billion in the first half,  is expected to spend $5.9 billion in the second half of this year to reach its $9.5 billion spending budget, up 30 percent from a 2015 total of 7.3 billion.

Aju News Lim Chang-won = cwlim34@ajunews.com
 
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