TOKYO – SEMI projects worldwide sales of semiconductor equipment of $16 billion in 2009, the largest annual decline in equipment sales since the association began data collection in 1991.

The forecast indicates, following a 31% decline in 2008, the equipment sector will post another significant decline of approximately 46% this year.

However, SEMI expects the market to grow approximately 53% in 2010 to $24.5 billion and to further increase about 28% in 2011 to $31.2 billion.

"Worldwide semiconductor manufacturing equipment sales have declined to the lowest annual levels since 1994, as the global economic crisis and industry downturn caused the world’s chip makers to significantly curtail spending and expansion,” said Stanley T. Myers, president and CEO of SEMI. “There has been recent improvement in equipment bookings, and we anticipate a significant growth off the bottom, with expectations of double-digit growth in the next two years.”

Wafer processing equipment is expected to decline about 46% in 2009 to about $12 billion. The wafer processing equipment market will rebound 54% in 2010 and 28% in 2011.

The market for assembly and packaging equipment will decline 33% to $1.4 billion this year, and will growth in the successive two years to reach $2.4 billion in 2011.

The market for equipment to test semiconductors is expected to decline in 2009 about 55% to $1.6 billion, and will also grow in the successive two years to reach $3.3 billion in 2011.

Significant contraction in 2009 was experienced in all market regions worldwide. Improved spending by NAND flash makers, foundries and packaging subcontractors are expected to be key growth drivers in 2010.