No:1 Customer (TSMC) and No: 2 Customer (Samsung) of AMAT are spending BIG to stay ahead of the game.
(Vested)
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Samsung Invests Big to Maintain Leadership, Support New Markets
Leadership in smartphones, Smart TVs, and tablet PCs spurs big investment in new IC fab.
OCTOBER 15, 2014
By IC Insights
Samsung recently announced plans to build a new, cutting-edge wafer fab—a $14.7 billion investment for the company that will be located in Pyeongtaek, a city south of Seoul. The new fab, slated to begin production in 2H17, will add to Samsung’s current impressive compilation of wafer fabs (Figure 1) as it seeks to maintain its leading position in memory IC sales and expand its system leadership beyond smartphones, Smart TVs, and tablets. Investing large is not new to
Samsung—it has allocated at least $10 billion per year on semiconductor capital expenditures since 2010 (Figure 2), and has accounted for 17-21% of total industry capital expenditures each year since then..........................................................
http://www.icinsights.com/data/articles/...ts/727.pdf
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Gartner Says Worldwide Semiconductor Capital Spending to Increase by More Than 11 Percent in 2014
Memory Manufacturers Enjoy Strong Pricing Environment, Setting Stage for Renewed Spending Growth
STAMFORD, Conn., October 16, 2014
Worldwide semiconductor capital spending is projected to total $64.5 billion in 2014, an increase of 11.4 percent from 2013 spending of $57.8 billion, according to Gartner, Inc. Capital equipment spending will increase 17.1 percent in 2014, driven by strong memory average selling prices and increased demand for consumer products (see Table 1).
For 2014, Gartner's forecast for semiconductor equipment has been increased slightly from the previous forecast. Longer term, Gartner expects modest growth through the semiconductor cycle, with just a modest pause in the equipment market expected in 2016.
"While capital spending outperformed equipment spending in 2013, the reverse will hold true for 2014," said David Christensen, senior research analyst at Gartner. "Total capital spending will grow 11.4 percent in 2014, compared with 7.1 percent in our prior forecast — a result of Samsung increasing its announced spending plans to $14 billion. Equipment spending will increase 17.1 percent, as manufacturers pull back on new fab construction and concentrate on ramping up new capacity instead."
In recent years, the equipment industry has realized significant consolidation, as major vendors have acquired complementary and competitive companies. As equipment advancements will lead to higher development costs, the trend of industry consolidation should be expected to continue.............................................................
http://www.gartner.com/newsroom/id/2876317
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Intelligent Systems to Exceed $1 Trillion in 2019 as the Market Continues to Disrupt Traditional Industries Including Manufacturing, Energy, and Transportation, According to IDC
16 Oct 2014
IDC study forecasts that the Intelligent Systems market will ship over two billion systems in 2019; with the Industrial, Transportation, Smart Home, and Energy segments growing fastest.
SAN MATEO, Calif., October 16, 2014 – The deployment of billions of advanced systems across major industries over the next five years will be critical to enabling the vision around intelligent systems, according to a new International Data Corporation (IDC) study, Worldwide Embedded and Intelligent Systems 2014-2019 Market Update.
The market for intelligent systems—defined by microprocessors, connectivity, and high-level operating systems/UI in systems excluding PCs, phones, servers, and tablets—will grow from 1.4 billion units and $755 billion in revenue this year to over 2.2 billion units and over $1 trillion in revenue by 2019, according to the IDC report.
"Intelligent systems continue to play a critical role in disrupting traditional industries as connectivity, sensors, and HW SW intelligence enables the ability to drive more value for applications and data," said Mario Morales, Vice President of IDC's Enabling Technologies and Semiconductors research group. "The value chain for the embedded market is broad and fragmented across a large set of industries that span decades of development and commercialization. Solving business-specific challenges across each industry with technology and data integration will ultimately dictate the cadence of adoption and help crystallize the opportunity over the next five years."
In 2019, intelligent systems will represent over one fourth of a total available market (TAM) of more than 8.5 billion systems in the combined intelligent and embedded systems market. Among the top-growing segments are driver management and fuel management systems in the transportation sector, smart wearables and smart home lighting systems in the consumer sector, digital pathology and virtual metrology systems in the healthcare sector, and industry-specific gateway products in the industrial sector.
For this forecast update, IDC expanded the embedded and intelligent systems and microprocessor coverage to include 263 system segments, in areas such as energy, smart building, smart home, transportation, and wearables to provide more insight on the technology adoption of each market.
IDC launches the new report in conjunction with our participation in the upcoming fourth annual Intelligent Systems Tech Forum in Menlo Park, California on October 29th and 30th. Resonating with major themes of the report, the conference will feature exclusive keynotes and sessions on the Industrial Internet, Connected Car, Wearables, and Semiconductors including keynotes from IDC's Mario Morales, GE's Niloy Sanyal, and Morgan Stanley's Mark Edelstone. The Forum also includes an exclusive panel of Chinese companies sponsored by Blue Focus that will discuss innovation, future government policy, and the thriving ecosystem in China and how the region is driving disruption in design, manufacturing, and usage models across a wide range of systems from infrastructure, automotive, to wearables. Visit
www.intelligentsystemstechforum.com to find out more and register.
The IDC report, Worldwide Embedded and Intelligent Systems 2014-2019 Market Update (IDC #252046, forthcoming), sizes and forecasts the traditional embedded systems and intelligent systems and microprocessor markets segmented across a broad set of industries and over 250 system categories. The study also provides the context of Intelligent Systems within the broader vision of the Internet of Things (IoT) by IDC.
http://www.idc.com/getdoc.jsp?containerId=prUS25204914