Worldwide semiconductor capital spending is projected to decline 0.7 percent in 2016, to $64.3 billion, according to Gartner.
“Economic instability, inventory excess, weak demand for PC’s, tablets and mobile products in the past three years has caused slow growth for the semiconductor industry. This slowdown in electronic product demand has driven semiconductor device manufacturers to be conservative in increasing production,” said David Christensen, senior research analyst, Gartner.
“Looking ahead, it appears the second half of 2016 may see improved demand. However, following Brexit, semiconductor inventory levels may rise in the third and fourth quarters, which could lead to reduced production volumes.”