After Double-Digit Growth in 1995, Dataquest Forecasts a Stall in Wafer Fab Equipment Market in 1996; Two Dataquest Reports Detail Planned Expansion Sites and Future Equipment Market.

SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 10, 1995--Although the wafer fab equipment market grew by nearly 50 percent in 1994, Dataquest expects it to grow by a more moderate 16 percent in 1995, with negative growth forecast for 1996.

The marked slowdown in the investment cycle should be triggered by the approach of the DRAM price-per-bit crossover of the 1Mbx16 configuration, according to Dataquest.

"Despite an expected market slowdown in the second half of 1995, the current backlog and booking rates were so strong heading into the year that we expect double-digit growth for 1995," said Clark Fuhs, principal analyst at Dataquest. "This downturn is normal as DRAM investment patterns have driven the cyclical growth of the wafer fab equipment industry since the late 1970s."

Dataquest forecasts the wafer fab equipment market to decrease in 1996 and level off in 1997 before the next spending cycle begins in 1998 (see Table 1).

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Table 1

Worldwide Wafer Fab Equipment Market Revenue Estimates and Forecast,
by Region
                        1993    1994    1995    1996    1997    1998
Total Wafer Fab
 Equipment ($B)          6.9    10.4    12.0    11.2    11.5    13.7
 Growth (%)             34.9    49.8    16.2    -6.9     2.9    19.1
Source: Dataquest (January 1995)

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An extensive examination of the future of wafer fab equipment can be found in two new Dataquest reports. "Semiconductor Equipment, Manufacturing, and Materials 1994 Final Forecast" contains Dataquest's forecast for the wafer fab equipment market through 1998, including regional capital spending forecasts, segmented wafer fab equipment forecasts, semiconductor production by region, and silicon consumption forecasts.

"Overview of Semiconductor Fabs: New, Planned, and Expansions" details the planned wafer fab expansion and construction sites for 1995 and beyond as well as the new sites that came online in 1994. Each site is addressed and explained, along with added Dataquest commentary.

Further details of Dataquest's wafer fab forecast will be presented today at the SEMI Industry Strategy Symposium Conference at Spanish Bay, California. For more information about purchasing Dataquest reports call 408-419-DATA. More information about Dataquest's services, descriptions of recent research reports, and full text of press releases can be found on the Internet at http://www.dataquest.com.

Dataquest Incorporated, headquartered in San Jose, California, is a 24-year-old global market research and consulting company serving the high-technology and financial communities. The company provides worldwide market coverage on the semiconductor, computer systems and peripherals, communications, document management, software, and services sectors of the information technology industry. Dataquest is an international company of The Dun & Bradstreet Corporation.

CONTACT: Dataquest Inc.

             Paul Wheaton, 408/437-8312
             [e-mail]