Wednesday, September 8, 2010

Front end fab spending to rise to US$34b this year, says SEMI

KUALA LUMPUR: The World Fab Forecast released at the end of August indicates a 133% increase in equipment spending for Front End fabs to US$34 billion this year and about 18% growth in 2011, while worldwide installed fab capacity (without Discretes) is expected to grow by 7% in 2010 and another 8% in 2011.

According to SEMI, the global industry association serving the manufacturing supply chains for the microelectronic, display and photovoltaic industries, fab construction spending will increase by 125% in 2010 and an additional 22% in 2011.

In a statement Sept 7 on its website, SEMI said the data reveals that for both 2010 and 2011, over 150 fab projects will contribute an estimated US$83 billion in spending.

The projects tracked include construction projects and equipment spending for high volume, smaller capacity, MEMS, and Discrete, including LED, fabs, it said. SEMI said that most of the current investments in construction assure additional capacity for the future.

The World Fab Forecast has identified a total of 54 construction projects underway in 2010 and the result is about US$4.5 billion in construction spending, it said.

About half of these projects are for LED facilities (mostly in China). In 2011, fewer but larger fabs will carry higher construction costs, about US$5.5 billion, it said.

"This is a record growth rate, off of the historic low of 2009. Compared to 2008 spending, 2010 total equipment spending will be only 27% higher.

"Compared to 2007, 2010 spending will be 11% lower. The World Fab Forecast report predicts spending in 2011 to increase 18%, bringing total spending to US$39 billion, finally surpassing 2007 spending levels," said SEMI.

SEMI's World Fab Forecast also provides details of facilities beginning operations in 2010 and 2011. By the end of 2010, about 22 facilities will begin operations. Analysed by sector, half of these are LED, six are Foundries, three are Analog and two are Logic.

SEMI said no new Memory fabs will begin operation in 2010. In 2011, another 28 facilities are expected to begin operations, including four Memory fabs.

Worldwide installed fab capacity (without Discretes) is expected to grow by 7% by the end of 2010 to 14.4 million 200 mm equivalent wafers per month (wpm), and by another 8% in 2011 to 15.8 million wpm. The Memory sector accounts for the largest share of worldwide installed capacity, about 41% in both 2010 and 2011. Foundry capacity follows having grown their market share from 24% in 2009 to 26% in 2011.

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