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Semiconductor capital spending could grow 27% this year, depending on Samsung

Published 08/24/2017, 10:00 AM
© Reuters.  Semiconductor capital spending could grow 27% this year, depending on Samsung
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  • Semiconductor industry capital spending will grow 20% this year, according to IC Insights, but could go up to 27% depending on Samsung’s (OTC:SSNNF, OTC:SSNLF) capital outlays.
  • Industry spending in 1H was 48% higher than the first half of 2016.
  • Spending in 2H will depend on Samsung’s spending outlays since the company represented 25% of total spending in the first half.
  • Samsung (KS:005930) spent $11B in outlays for its semiconductor group in the first half, which was only $300M under the total spending last year.
  • If Samsung spends $22B in capital outlays this year, the total semiconductor market could reach $85.4B, which would amount to that 27% growth.
  • Taiwan Semiconductor Manufacturing (NYSE:TSM) spent $6.8B in capital outlays in 1H and could spend $3.2B in 2H.
  • Intel (NASDAQ:INTC) spent $4.7B in 1H and could spend $7.3B in 2H if it sticks to its $12B budget for the year.
  • Previously: Semiconductor market data firm raises 2017 revenue estimates (Aug. 23)
  • Now read: Intel's Dividend: Do Your Homework


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