2005 GLOBAL SEMICONDUCTOR EQUIPMENT SALES OF $32.88 BILLION

SEMI: Worldwide sales of semiconductor manufacturing equipment totaled $32.88 billion in 2005, representing a year-over-year decrease of 11 percent.

Compiled from data submitted by members of SEMI and the Semiconductor Equipment Association of Japan (SEAJ), the Worldwide SEMS Report is a summary of the monthly billings and bookings figures for the global semiconductor equipment industry. The report, which includes data for seven major semiconductor producing regions and 22 product categories, shows worldwide billings totaled $32.88 billion in 2005, compared to $37.08 billion in sales posted in 2004.

This past year marked an anticipated decline in the global semiconductor equipment industry following a large expansion in 2004I. However, 2005 still posted the third all-time strongest year for the semiconductor equipment industry.

The South Korean market region grew the most in 2005, rising 26 percent to US$5.8 billion, surpassing Taiwan to become the second largest equipment market behind Japan. Japan, contracted 1 percent to about US$8.2 billion. The Rest of World region, which aggregates Singapore, Malaysia, Philippines, other areas of Southeast Asia and smaller global markets, declined 36 percent, with the market in China experiencing a 50 percent decrease. Taiwan, which led world growth in 2004 with a 166 percent expansion in equipment spending, declined 23 percent in 2005. Equipment markets in Europe and North America decreased 5 percent and 2 percent respectively in 2005.

The global wafer processing equipment market segment shrank 10 percent; the assembly and packaging segment declined 13 percent, the total test equipment sales decreased 17 percent.

2004-2005 Semiconductor Capital Equipment Market by World Region (Dollars in U.S. Millions; Percentage Year-over-Year)

Region	2004	2005	% Change
China	2,683	1,327	-50.5
Europe	3,444	3,262	-5.3
Japan	8,276	8,183	-1.1
Korea	4,614	5,826	26.3
North America	5,812	5,702	-1.9
Taiwan	7,762	5,722	-26.3
Rest of World	4,490	2,862	-36.3
Total Regions	$37,081	32,884	-11.3

The Worldwide SEMS Report

Publ 20060320