Speaking to Digitimes, Yu said investments by pure-play foundries for 2016 are expected to grow from a low point in 2015. In fact most of the spending will be made during the latter half of the year.

The overall fab equipment spending for 2016 is forecast to remain flat but spending will increase if NAND flash suppliers spend big on their respective 3D NAND technologies, Yu said.

In the NAND flash market, situations will be better this year than last year and NAND flash makers are gearing up for commercial production of 3D NAND products this year, he added.

Applied Materials reported revenues of $9.66 billion for its fiscal year ended October 25, 2015, representing a 6 per cent increase, with operating profits and non-GAAP adjusted diluted EPS hitting the highest levels in four years. Orders grew 5 per cent to $10.10 billion in the company's fiscal 2015.