Source form Internet

Demand for semiconductor manufacturing equipment in the second half of 2012 will come mainly from the needs of wafer foundry houses to push advanced manufacturing processes into commercial production, as equipment demand from the memory sector is expected to remain sluggish through 2013, according to industry sources.

Buoyed by demand from foundry houses, sales of semiconductor equipment in Taiwan will grow 8% on year to US$9.26 billion in 2012 and could maintain at a level of over US$9 billion in 2013, according to SEMI.

The migration to 28nm and 20nm processes by Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC) will drive up demand for semiconductor equipment in Taiwan in 2013, commented the sources.

On the other hand, DRAM makers are more conservative about capital spending as the pending launch of new ultrabooks and Windows 8-based PC products has failed to pump up DRAM chip prices, the sources noted.

In 2012, foundry houses will contribute to 65% of Taiwan's semiconductor industry's total capital spending, while the ratio made up memory companies will drop to 26% from 33% of a year earlier, SEMI indicated.