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Outlook for semiconductor equipment industry improving: Gartner
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08:30, June 16, 2009

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The outlook for the semiconductor equipment industry is beginning to improve as declines of capital spending appears to have bottomed out in the second quarter of 2009, market research firm Gartner said on Monday.

"The impact of the economic crisis has hit the semiconductor equipment industry hard, but signs of life are returning," Klaus Rinnen, Gartner's managing vice president, said in a statement.

"Undoubtedly it will be a long, slow road to complete recovery, but we are seeing the first indications of increased foundry activity to replenish inventories depleted by the cutbacks of the past few quarters," he added.

The current uptick in semiconductor sales may not be sufficient to overcome the effects of industry-wide overcapacity and low utilization rates in the short term, and worldwide annual semiconductor capital equipment spending is expected to drop further in 2009, analysts at Gartner said.

However, they predicted that a gradual improvement on a quarter-by-quarter basis throughout the rest of 2009 and into next year will help semiconductor capital equipment spending return to growth in 2010.


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