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Global sales of chip-making gear in August rose 51.4 percent from a year earlier, and demand is expected to stay strong, an industry group said on October 16.
Sales of tools used to make semiconductors rose world-wide to $3.04 billion in August, with sales growing over 70 percent from the year-ago period for wafer processing equipment, the Semiconductor Equipment Association of Japan (SEAJ) said.
Orders worldwide for chip equipment in August rose 50 to 60 percent from a year earlier, SEAJ spokesman Toshihisa Kuno said. A rise in orders is good for revenues three to six months ahead, when the orders are usually filled.
"There's no sign of a downturn through the end of the year. I don't think we have silicon cycles any more," he said, referring to the cyclical ups and downs seen in the semiconductor industry. "Demand is especially strong in China and South Korea." Healthy demand for mobile phones, digital music players and flat screen TVs is raising semiconductor demand and prompting chip makers to ramp up production capacity and buy more chip-making equipment.
The SEAJ compiles the monthly data with another industry group, California-based Semiconductor Equipment and Materials International (SEMI).

Copyright Reuters, 2006

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