New Research From SEMI Reveals Future Trends for China's Semiconductor Fabs
SAN JOSE, Calif., Sept. 11 /PRNewswire/ -- Chinese semiconductor fab
capital expenditures from 2006 through 2008 are expected to exceed US $9.8
billion which is larger than the total capital expenditure of US $8.7
billion in last five years from 2001 to 2005, according to a recent survey
of major semiconductor manufacturers in China. This is one of the
significant trends found in "China Semiconductor Wafer Fab and Foundry
Outlook," a comprehensive new market research report now available from
SEMI.
Investments in 300mm fabs and advanced process technology are becoming
major drivers for capital spending in the China market, while new fab
projects that lack strong government support and funding from overseas
partners will see greater challenges.
"Investment trends are evolving in China, with the future more
promising for new fab projects by established semiconductor manufacturers
compared to new entrants," said Mark Ding, president of SEMI China. "Fab
projects that bring advanced technology and significant foreign-investment
will find financing and government support more readily available."
As part of the investment, at least five new 300 mm fabs are in various
stages of planning, construction and equipping in China over the next three
years. Spending on 300 mm equipment is expected to account for more than
70% of total new fab equipment spending by 2008.
Fab Equipment Spending in China
(in US$ Millions)
2003 2004 2005 2006(F) 2007(F) 2008(F)
New Fab
Equipment $901 $1,929 $761 $1,713 $1,603 $1,906
Total Fab
Equipment $964 $2,109 $1,001 $2,033 $2,053 $2,556
The report is based on over 60 in-depth interviews conducted with both
domestic and international companies, including semiconductor
manufacturers, foundries, equipment makers, materials suppliers, fab
construction companies, investment entities, industry associations and
industrial parks.
By interviewing industry leaders, senior corporate executives and
government officials, SEMI's report explores key factors for a fab project
to be successful in China. The report also puts current fab investments
into context with the macroeconomic environment in China and provides
readers insight towards the long-term future of China's fab industry.
The report identifies important trends and forecasts for the China
semiconductor market. Some of the key findings include:
-- Spending for new 300 mm wafer fab equipment will dominate in the coming
years with entry-level process technology at the 0.13 µm node.
-- The annual growth rate at which China's established fabs add new
capacity is beginning to reflect the real market demand, and by 2008,
annual capacity growth is expected to be about 16 percent.
-- Fab material spending is projected to grow steadily over the next three
years. Fab material spending in 2007 may be as much as 58 percent
higher than in 2006, as the new 300 mm capacity built in 2006 will be
largely ready in 2007.
-- Local fab equipment and materials segments are receiving more support
from the government, and alliances with local fabs are encouraged.
The report is available for purchase from SEMI for $3,000 (SEMI
members/single user), and $4,000 (non-members/single user). The
subscription includes three updates to be issued over the next twelve
months. A company- wide site license is available for $7,500 for SEMI
corporate member companies and $10,000 for non-members. For more
information or to order the report, call SEMI Global Sales and Services at
1-877-746-7788 (U.S. toll-free) or 1-408-943-6901.
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 (California), Seoul, Shanghai,
Singapore, Tokyo and Washington, D.C. For more information, visit
http://www.semi.org .
SOURCE SEMI
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Related links: http://www.semi.org
CONTACT: Dan Tracy, +1-408-943-7987, or dtracy@semi.org, or Scott Smith, +1-408-943-7957, or ssmith@semi.org, both of SEMI
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