31 May '17, 10pm

Chip Industry's 'Billion Dollar Capex Club' Expands

Chip Industry's 'Billion Dollar Capex Club' Expands

SAN FRANCISCO—The ranks of chip companies that spend more than $1 billion on capital expenditures are expected to grow to 15 this year, the most in 10 years, according to market research firm IC Insights Inc. European chip maker STMicroelectronics NV and Taiwan's Nanya Technology Corp. are both expected to join the "billion dollar capex" club this year, in addition to Germany's Infineon Technologies AG and Japan's Renesas Electronics Corp., according to the latest edition of IC Insights' McClean Report. Last year, only 11 chip vendors spent more than $1 billion on capex. As recently as 2013, the number was only eight. If IC Insights' forecast hold true, the number of companies that spend more than $1 billion on capex would be the highest since 2007, when 16 companies were in the billion dollar capex club prior to the onset of the last global financial crisis. Bill McClean,...

Full article: http://www.eetimes.com/document.asp?doc_id=1331833&_mc=RS...

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