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SEMI Silicon Manufacturers Group Announces Silicon Wafer Shipment Consensus Forecast

            Wafer Shipments Forecast to Grow 18 Percent in 2006

    SAN JOSE, Calif., Oct. 2 /PRNewswire/ -- The leading suppliers of
silicon wafers participated in a consensus survey, obtained from SEMI
surveying the SMG members. This survey provides an outlook for the demand
in silicon units for the period 2006 - 2009. The results show silicon
shipments reaching 7,811 million square inches in 2006, 8,199 million
square inches in 2007, 9,370 million square inches in 2008, and 9,764
million square inches in 2009 (please refer to below table). Total wafer
shipments are expected to experience robust growth through the entire
forecast period, with an average CAGR of over 10% from 2005 - 2009.
    "We are currently seeing unprecedented demand, driven by the end market
electronic applications. The silicon segment that is experiencing the
greatest growth is 300mm, which is anticipated to be over 30% of total
silicon volumes in 2007." said Tatsuhiko Shigematsu, chairman SEMI SMG and
technology officer of SUMCO Corporation.
                           2006 Consensus Forecast
                    Total Electronic Grade Silicon Slices
                         (Millions of Square Inches)

                          Actual                    Forecast
                           2005        2006       2007      2008      2009
    MSI                   6,645       7,811      8,199     9,370     9,764
    Annual Growth         6%          18%        5%        14%       4%
    Silicon wafers are the fundamental building material for
semiconductors, which in turn, are vital components of virtually all
electronics goods, including computers, telecommunications products, and
consumer electronics. The highly engineered thin round disks are produced
in various diameters (from one inch to 12 inches) and serve as the
substrate material on which more than 95 percent of today's semiconductor
devices or "chips" are fabricated.
    All data cited in this release are inclusive of polished silicon
wafers, including virgin test wafers, epitaxial silicon wafers, and
non-polished silicon wafers shipped by the wafer manufacturers to the
end-users. The Silicon Manufacturers Group acts as an independent special
interest group within the SEMI structure and is open to SEMI members
involved in manufacturing polycrystalline silicon, monocrystalline silicon
or silicon wafers (e.g., as cut, polished, epi, etc.). The purpose of the
group is to facilitate collective efforts on issues related to the silicon
industry including the development of market information and statistics
about the silicon industry and the semiconductor market.
    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




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    ssmith@semi.org, both of SEMI