U.S. Leads in Spending on Chip Manufacturing Equipment

Spending by Intel and GlobalFoundries, the contract manufacturing venture formed by AMD, has pushed the United States to the lead in global spending on chip manufacturing equipment, reports InfoWorld.

U.S. spending is on track to reach $3.56 billion this year, according to the group Semiconductor Equipment and Materials International (SEMI). FabTech says August will be the year's best month so far with bookings of $599 million in the United States. It's the fifth consecutive month of increases.

Spending on chip factory equipment took a 52 percent dive to $14.14 billion in 2009, after falling 31 percent in 2008 to $29.52 billion, the group said. The industry has been especially hard-hit in this recession, and 31 chip factories worldwide will close.

But next year should be better. SEMI forecasts global spending on chip equipment will rise 64 percent in 2010 to $24.4 billion. Japan is expected to slip to second place in the market with spending of $2.96 billion this year, but should regain its crown with purchases of $4.32 billion in 2010. Next year the United States is expected to spend $4.30 billion.