STAMFORD, CT -- Worldwide semiconductor capital equipment spending will rocket to new heights this year before falling to earth in 2007, Gartner said in a new report. The research firm said equipment sales were on pace to jump 24.8% this year, to $42.3 billion.

However, the firm forecasts a 4.5% drop in 2007 and then a rebound in 2008.

The decline will begin in the second quarter of next year, Gartner said.

Gartner forecast worldwide wafer fab equipment sales would reach $32.6 billion this year, up 25.4%. Sales of automated test equipment (ATE) are projected to rise more than 20% as well this year, the firm said.

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