Five Companies to Account for 64% of $61.4B Semiconductor Capex in 2012

The top 5 capex spenders for 2012—Samsung, $13.1 billion; Intel, $11.2 billion; TSMC, $8.3 billion, SK Hynix, $3.7 billion; and GlobalFoundries, $3.1 billion—are forecast to account for 64% of the $61.4 billion in semiconductor capital expenditures forecast for 2012.

The expected 64% marketshare held by the top 5 spending leaders is significantly greater than seven years ago, when the top 5 companies represented just 40% of total semiconductor industry spending. Similarly, the top 10 capital spending leaders are now forecast to account for 77% of total industry spending in 2012, a jump of 22 percentage points from 2005 when the top 10 companies represented 55% of spending. The figures reveal there are fewer suppliers that, on their own, can afford to spend the enormous dollars necessary to build and equip a new fab. As a result, more companies are pursuing the fab-lite or fabless business model and relying on foundries to manufacture their devices.

The $61.4 billion capital expenditure forecast for 2012 represents a 6% decline from the $65.6 billion spent for semiconductor capex in 2011. Only 6 of 35 leading semiconductor suppliers are forecast to increase their capital expenditure budgets in 2012 compared to 2011, led by Rohm with a 78% increase. Other major suppliers that are forecast to increase their semiconductor capex budgets for 2012 include UMC, 26%; SK Hynix, 16%; TSMC, 13%; Samsung, 11%; and Intel, 4%. More details of semiconductor capital expenditure trends and spending plans for individual companies can be found in the 2012 edition of IC Insights’ The McClean Report or by attending IC Insights’ upcoming Fall Forecast Seminar.