Big Three Chipmakers Likely to Boost Capex

By Alan Patterson, EETimes, TAIPEI, Aug. 08, 2016 – 

The big three chipmakers Intel, Samsung and TSMC - are likely to increase capital expenditures during the second half of this year while the rest of the semiconductor industry tightens the belt, according to a market research firm.

The top-three companies will probably spend $20 billion for capex, representing a 90 percent increase from the first half of 2016, IC Insights said in a report emailed to EE Times on August 4. The companies will need to boost spending later this year to meet full year capex targets, according to the Scottsdale, Arizona-based company.

"In contrast to the 'Big 3' spenders, capital outlays by the rest of the semiconductor suppliers are forecast to shrink by 16 percent in the second half of this year as compared to the first half," the IC Insights report said. "In total, 2016 second-half semiconductor industry capital spending is expected to be up 20 percent over first-half 2016 outlays, setting up a busy period for semiconductor equipment suppliers through the end of this year."

The boost in spending is likely to widen the technology gap between the big three chipmakers and their smaller competitors. Samsung, Intel and TSMC are so far the only semiconductor companies to have announced plans to ramp up production of geometries in the 10nm range and adopt EUV lithography in the next few years.

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