Of course, in connection with the declining demand for electronics in the consumer area, one often hears about intentions of memory manufacturers to lower the cost of capital. At the same time, experts note that even the caution shown by some market participants will not prevent the semiconductor industry from ending the year with a record investment sum of 185.5 billion US dollars.
Representatives of the analysis company are convinced of this. IC Insights, which indicate that growth in capital spending in the industry will reach 21% by the end of 2022. That’s down from last year’s 35% growth and down from the forecast earlier in the year (24%), but the caveat is that capital spending in the semiconductor industry has risen consistently by double-digit percentages for the third straight year. This last time was observed in the period from 1993 to 1995 inclusive.
Earlier, analysts at IC Insights had expected semiconductor industry capital expenditures to rise to $190.4 billion this year, but difficult macroeconomic conditions and signs of an overproduction crisis in some market segments suggest growth will be capped at 21% and the amount of spending will not exceed $ 185.5 billion. In any case, market participants will spend an impressive $ 338.6 billion on the construction of new businesses together with last year and still will not be able to complete the entire to satisfy demand. As summarized by the authors of the forecast, the industry will most likely face a decrease in capital spending next year, as market participants have to assess the situation after three years of strong growth.