Capital equipment spending will increase 17.1% in 2014.
Global semiconductor capital spending is expected to reach $64.5bn this year, up 11.4% from last year’s $57.8bn, Gartner reported.
The report added that the strong memory average selling prices and growing demand for consumer products will drive the capital equipment spending by 17.1% by the end of 2014.
Gartner senior research analyst David Christensen said: "While capital spending outperformed equipment spending in 2013, the reverse will hold true for 2014."
"Total capital spending will grow 11.4 percent in 2014, compared with 7.1 percent in our prior forecast — a result of Samsung increasing its announced spending plans to $14 billion. Equipment spending will increase 17.1 percent, as manufacturers pull back on new fab construction and concentrate on ramping up new capacity instead."
During the year, foundries are expected to outspend the logic integrated device manufacturers (IDMs), with 4.5% rise in contrast with the 0.3% drop in overall logic spending.
During the current quarter forecast, the memory capital expenditure (capex) is expected to rise by 40% in 2014, compared to 25% rise in the earlier quarter’s forecast, with memory producers set to benefit from a strong pricing environment.
The report expects that the current DRAM undersupply will continue through 2015, receding into an oversupply in 2016 with the addition of a new wafer capacity added to the market.