Despite Falling Memory Prices, Companies Continue to Spend Big on 300 mm Fabs

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Despite Falling Memory Prices, Companies Continue to Spend Big on 300 mm Fabs
    SAN JOSE, Calif., Aug. 7 /PRNewswire/ -- In a recent analysis of its
Fab Database reports, SEMI(R) has found that despite the steep pricing
declines experienced by memory, device manufacturers continue to invest
significantly in additional 300 mm fab capacity. In total, worldwide 300 mm
capacity will double from the beginning of this year by the end of 2008 as
25 new 300 mm high-volume fabs come online. By the end of 2008 only 73 -300
mm fabs will provide over 6.2 million wafers per month. The fab landscape
is changing; fewer but larger fabs are being constructed.
    Having reached record levels in 2006, fab construction spending is
expected to decline only slightly this year, with Taiwan and Japan
accounting for the largest share of worldwide construction spending at 30
percent and 20 percent respectively, followed by China with over 16
percent. These investments are for 300 mm and Memory (DRAM and Flash), as
device manufacturers are expecting a significant increase in demand for
DRAM and Flash. The study also revealed that even foundries have retained
their ambitious capex plans for 2007. Fab construction expenditures are
expected to increase 40 percent to reach to record levels of $10B in 2008,
with South Korea expected to have the largest growth followed by Southeast
Asia.
    A closer look at fab equipping trends reveals 5 percent growth this
year and another 5 percent increase projected in 2008. In 2007, Taiwan is
expected to account for over 24 percent of fab equipment spending, followed
closely by Japan at almost 22 percent. South Korea is expected to represent
about 17 percent of worldwide spending for fab equipment. These investments
will result in a 17 percent increase in worldwide fab capacity this year
and about an 11 percent increase in 2008. Memory products will comprise
about 38 percent of all worldwide capacity this year and 40 percent in
2008.
    For more information about SEMI's fab database products, please visit
http://www.semi.org/fabs for additional information on these reports.
    'Fab Capacity Report':
    Provides a comprehensive listing of over 1,000 fabs worldwide and
features details by company and by fab in over 12 categories (including
capacity ramps, geometries, wafer sizes, product types and regions) and
covers three years -- the past 6 quarters and the next six quarters. This
report is in an easy to use Excel format and lists by quarter and by fab
capital expenditure for fabs constructing and equipping, capacities,
geometries, product types, and wafer sizes and more. NEW features include:
Capital expenditures of fabs equipping and includes fabs with construction
projects.
    'FabFutures':
    The Next 6 Quarters' lists fab details of 2 years: for the past 2
quarters and the next 6 quarters for more than 200 fabs in which major
expenditures are taking place. The report is in an easy to use Excel format
and lists by quarter cost of construction and equipment spending by fab,
the capacities, geometries and wafer sizes, key milestone dates and more.
    SEMI is a global industry association serving companies that provide
equipment, materials and services used to manufacture semiconductors,
displays, nano-scaled structures, micro-electromechanical systems (MEMS)
and related technologies. SEMI maintains offices in Austin, Beijing,
Brussels, Hsinchu, Moscow, San Jose (Calif.), Seoul, Shanghai, Singapore,
Tokyo and Washington, D.C. For more information, visit http://www.semi.org.
SOURCE SEMI
http://www.semi.org
CONTACT:
Scott Smith of SEMI, +1-408-943-7957,
ssmith@semi.org