STAMFORD, CT – A lull in demand for semi equipment has arrived, as worldwide semi capital equipment spending is forecast to total $43.1 billion this year, a 2.7% increase year-over-year, according to Gartner Inc. However, the mark represents a large increase over the research group’s earlier forecast.

For 2008, Gartner anticipates that DRAM spending will decline from this year’s peak, and equipment market growth will originate from NAND, logic and foundry, which will drive a second year of slow single-digit growth. However, analysts are projecting strong DRAM unit demand in 2008 that should mitigate concerns of overcapacity and could provide upside potential for next year.

Wafer fab equipment revenue is on pace to grow 5% this year, which represents a significant slowdown from 2006 growth of 25.7%. Memory is expanding again, reaching more than 54% of total WFE. However, memory spending will likely slow in the second half of the year as budgets are exhausted, says Gartner.

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