Memory Woes May Hurt Chip Tool Makers Worse Than Expected

From PC World: A memory chip glut this year has already caused companies to curtail orders of new production line machinery, but the lack of any sign of a rebound has caused at least one industry watcher to rethink its chip equipment forecast.

Semiconductor Equipment and Materials International (SEMI) in July forecast global chip equipment revenue will drop to US$34.12 billion this year, down 20 percent from US$42.77 billion last year.

But, the decline could be a steeper 25 percent drop, warned Dan Tracy, senior director of research at SEMI, speaking at Semicon Taiwan 2008 in Taipei on Tuesday. However, he cautioned that SEMI has not formally reassessed its forecast and won't until later this year.

The problem appears to be mainly among memory chip makers, but companies in other segments of the chip industry are also reducing orders for equipment, said Clark Tseng, a senior manager at SEMI in Taipei.

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