The equipment market decline in 2005 was the result of a number of factors, which worked together to slow the demand for new capacity.
More Quotes from Klaus Rinnen:
The current increase in ATE sales is primarily being driven by increasing capacity requirements for memory and SOC testers. Expanding demand for these semiconductor devices, coupled with the trend toward further outsourcing of test to SATS companies, is sparking the latest ATE market growth cycle.Klaus Rinnen
The industry has managed to respond well to inventory fluctuations, slightly excessive capacity levels, and rapidly changing market parameters. The industry appears to have a reasonable balance between production levels and capacity and end-user demand.
Klaus Rinnen
Back end capacity is relatively tight, mainly due to raw material issues and the pending Restriction of Hazardous Substances and Waste Electrical and Electronic Equipment environmental regulations.
Klaus Rinnen
We expect sequential quarterly revenue growth to have returned in the first quarter of 2006, after hitting a low point in the fourth quarter of 2005.
Klaus Rinnen
Looking further ahead, spending will rise in the first half of 2006, but spending should flatten in the second half of the year before starting a sustainable recovery into 2008.
Klaus Rinnen
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