This growth rate is rather more than Gartner's previous forecast of 1.4 percent which might have been due to some of the following:
1.Gartner picks figures at random.
2. Gartner found a Ram with a better liver for the entrail reading
3. Aggressive investment in memory and leading-edge logic which is driving spending in wafer-level equipment.
Big G says it is number three.
Takashi Ogawa, research VP at Gartner said that spending momentum is more concentrated in 2017 mainly due to strong manufacturing demand in memory and leading-edge logic.
"The NAND flash shortage was more pronounced in the first quarter of 2017 than the previous forecast, leading to over 20 percent growth of etch and chemical vapor deposition (CVD) segments in 2017 with a strong capacity ramp-up for 3D NAND," he said.
According to Gartner's latest view, the next cyclical down cycle will emerge in 2018 to 2019 in capital spending, compared with 2019 to 2020 in its previous forecast.
"Spending on wafer fab equipment will follow a similar cycle with a peak in 2018. While the most likely scenario will still keep positive growth in 2018, there is a concern that the growth will turn negative if the end-user demand in key electronics applications is weaker than expected," said Ogawa.