Business Is in Full Bloom

Business Is in Full Bloom

January 10, 2022

  • Order activity for semiconductor equipment nudged higher, hitting a hot 114
  • These high levels of activity should translate into a very strong 1H22 for equipment manufacturers
  • With the pipeline in new fab investments close to $100B for the next two years, equipment manufacturers have plenty of visibility and feel positive about the outlook
  • On the semiconductor side, growth is rolling over from the Q3 peak but it's still very robust
  • Semiconductor sales are expected to grow by double-digits again in 2022 driven by a robust Cloud/HPC expansion, surging Automotive demand, easing shortages, and inventory restocking
  • VLSI's Chip Price Performance jumped higher
    • DRAM increased
    • NAND flat
    • MPUs rose
  • Planned additions are on the rise

Business Is in Full Bloom