Credit: Shutterstock photoElectronics manufacturing trade group Semi believes the good times will continue for the semiconductor-equipment market for at least another year.
At the annual Semicon Japan exposition on Tuesday, Semi forecast that chip-gear sales will hit record highs in 2017 and 2018.
The global industry association estimates that worldwide sales of new semiconductor manufacturing equipment will rise 35.6% this year to a record $55.9 billion. That will exceed the previous record of $47.7 billion set in 2000.
In 2018, Semi predicts sales will increase 7.5% to $60.1 billion for another record-breaking year.
This year, South Korea will be the largest market for chip equipment for the first time, Semi said. After holding the top spot for five years, Taiwan will fall to second, followed by China in third.
In 2018, South Korea, China and Taiwan are forecast to remain the top three markets, with South Korea keeping the top spot with $16.9 billion in chip-gear sales. China is forecast to become the second-largest market at $11.3 billion.
IBD'S TAKE:For the latest news on chip stocks, visit IBD's news page Chip Stocks To Watch And Semiconductor Industry News .
IBD's Electronics-Semiconductor Equipment industry group is currently ranked No. 23 out of 197 groups. Three months ago, it was ranked No. 16, and six months ago, it was No. 3.
The largest companies in the group by market cap are ASML Holding ( ASML ), Applied Materials ( AMAT ), Lam Research ( LRCX ) and KLA-Tencor ( KLAC ).
Applied Materials is currently ranked No. 26 on the IBD 50 list of top-performing growth stocks.
By the closing bell on the stock market today , ASML lost 1.7% to finish at 172.16. Meanwhile, Applied Materials dropped 2.2% to 50.47; Lam Research was down 2.2% to 181.57; and KLA-Tencor slipped 0.8% to 103.06.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
