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According to the February 2008 issue of Business Trends the semi-conductor industry is looking to decrease its spending by 9.9%. Industry experts say this is due to account for the over supply of memory.

Although spending will slip overall for the year experts believe that it will pick back up towards the end of this year setting up what could be a solid 2009.

The industry was fortunate enough to enjoy increases in the 20% range in 2006 but saw the trend to slow throughout 2007 only increasing 6.8% to $44 billion dollars.

Also according to Business Trends, "In 2008, all major segments of the equipment market to see lower spending, particularly areas that are heavily exposed to the DRAM acctor."

Also fear of a looming U.S. recession has lead many top execs at a lot of these companies to slow its spending.

Gartner claims that he, "sees a weak first half as DRAM companies slow down investments to get supply and demand balance under control, more than offsetting increased spending fo NAND flash. But foundries pushing to the next technology node should lead a rebound in2H08, along with logic investments."

In 2007 the total semi-conductor capital spending hit $59.09 billion dollars and will slip to $51.30 billion dollars. However experts predict that those figures will increase in 2009 to $55.72 billion and increase again in 2010 $63.25 billion.

There is no question that a slowing U.S. economy has a strong affect on the semi-conductor industry, however experts in the field agree, that they will rebound fine and by the end o 2012 everything will be back to normal heading in a positive direction.