SEMI: Despite downturn, wafer capacity continues to grow
Worldwide fab capacity to see 4-5% growth this year.
By James Carbone -- Purchasing, 1/15/2009 2:00:00 AM
The electronics industry downturn will result in worldwide fab capacity increasing only 5% in 2008 and only 4–5% in 2009, according to a new report by trade association SEMI.
The fab capacity growth rates are lower than in previous years. From 2003–2007, semiconductor fab capacity increased nearly 10% or more every year. In 2008, wafer fab capacity is forecast to reach 15.4 million wafers per month and increase to 16.1 million wafers per month in 2009.
In its report, SEMI, based in San Jose, Calif., also says construction of new fabs fell by 41% in 2008 compared to the previous year. Building of five new fabs commenced in 2008 and in 2009, six fabs are scheduled to begin construction.
Fab growth is slowing because there is underutilization of existing fabs. During the fourth quarter of 2008, foundries were expected to reach the lowest levels of utilization since 2002. The low levels were expected to continue though the first half of 2009. Foundries, like other chip companies, will reduce their capital expenditures in 2009.
Because of the poor economy and chip market, most memory companies are opting to close their 200mm fabs. However, some are maintaining smaller, but positive growth rates for their 300mm fabs.
The slowdown in growth of wafer fab capacity and the building of new fabs should not hurt semiconductor capacity and chip supply in 2009. However, if the slowdown in wafer capacity growth continues next year and into 2010, chip supply will tighten, leadtimes will stretch and prices will increase, according to the SEMI report.
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