Dataquest Estimates Wafer Fab Equipment Market Neared $18 Billion in 1995.

SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 9, 1996--As the semiconductor market continued to flourish last year, the wafer fab equipment market grew 67 percent in 1995 with revenue reaching $17.9 billion, according to a new Dataquest report.

The industry is forecast to grow an additional 36 percent this year, but the accelerated growth is putting a strain on the market.

"Backlogs in the equipment industry exploded in 1995, with reports that stepper lead times are over one year," said Clark Fuhs, senior analyst in Dataquest's Semiconductor Equipment, Manufacturing, and Materials Worldwide program. "Companies are having trouble filling all their open positions, and silicon supplies are extremely tight. Yet the engines of demand continue for semiconductors in PCs and communications/networking equipment."

In 1997, the market will slow down as DRAM capacity investment will be weaker, but strong logic capacity growth will continue. The tight supply of foundry and logic capacity is expected to produce continued investments in the United States and Asia in 1997 (see Table 1). -0-

Table 1
Worldwide Wafer Fab Equipment Market Revenue Estimates and Forecast
(Millions of U.S. Dollars)
                             1994     1995      1996     1997    2000
Total Wafer Fab Equipment  10,755   17,911    24,338   24,709  34,365
     Percentage Growth       56.4     66.5      35.9      1.5    29.5
North America               3,141    5,262     7,512    7,969  11,723
     Percentage Growth       47.5     67.5      42.8      6.1    26.3
Japan                       3,668    5,901     7,094    6,445   9,055
     Percentage Growth       49.1     60.9      20.2     -9.1    28.0
Europe                      1,385    2,130     2,733    2,590   3,655
     Percentage Growth       41.6     53.8      28.3     -5.3    24.9
Asia/Pacific-ROW            2,562    4,618     6,998    7,705   9,931
     Percentage Growth       95.7     80.2      51.5     10.1    36.8
Source: Dataquest (January 1996)
-0-

Further details of Dataquest's wafer fab forecast will be presented today at the SEMI Industry Strategy Symposium 1996 at Pebble Beach, California. Dataquest's entire wafer fab equipment market forecast will be published in an upcoming Semiconductor Equipment, Manufacturing, and Materials Worldwide 1995 year-end forecast. The report includes capital spending estimates by company and a summary of the trends driving the wafer fab equipment market.

To inquire about Dataquest reports, please call 800/419-DATA. More information about Dataquest's programs, descriptions of recent research reports, and full text of press releases can be found on the Internet at http://www.dataquest.com.

Dataquest is a 25-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 a Gartner Group Company.

CONTACT: Dataquest

Tom McCall, 408/468-8312

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