Worldwide semiconductor capital equipment spending is forecast to total $40.6 billion in 2007, a 3.2% decline from 2006. The market is expected to rebound in 2008, with spending expected to reach $46.7 billion, a 14.9% increase, said Gartner. This is below its previous forecast at the end of 2006.

After growing more than 18% in 2006, packaging and assembly equipment market revenue is projected to decline 12.2% in 2007, but will grow 20.2% in 2008. ATE sales will slow in 2007, with an expected decline of 11.2% for the year, the firm said.