Sales of semiconductor manufacturing equipment to China to drop 33.6% in 2005

Chinese chip-equipment purchasing is set to drop 33.6% in 2005 compared with the relative boom in 2004, according to The Information Network. While production of ICs in mainland China grew 34.8% in 2004, semiconductor manufacturing equipment purchases grew a phenomenal 146%. But 2005 will be another story. With the slowdown in the semiconductor industry and accompanied cuts in SMIC's capital spending, equipment sales will drop 33.6% to $1.88 bln.