STAMFORD, CT -- Worldwide semiconductor capital equipment spending will drop 19.8% to $47.5 billion this year, says Gartner Inc.

In December, the research firm forecast a 10% drop for the year.

The company blamed lower capital spending for memory chips. “Since our last update in late December, reported DRAM spending plans have declined to the point where we are now projecting a drop of almost 47% in DRAM spending and 29% in total memory in 2008,” said managing VP Klaus Rinnen. The firm expects a recovery will begin in the second half.

Global packaging and assembly equipment spending is now forecast to drop 18.1%, extending last year's 3.7% decline. Automated test equipment is expected to drop 13% this year, following last year's 14% decline. Gartner said market conditions for those segments should begin to turn up this summer.

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