The report, prepared by PwC’s Global Technology Centre, shows that the most significant impact Chinese production capability will bring to the industry is cost-related. Cost efficiency has long been the focus of many chip suppliers, particularly those with an Asia-Pacific focus, but circumstances in China will create another dimension to this competition&#8212because the Chinese industry’s deverticalized fabless/foundry model makes lower cost structures possible. Furthermore, many Chinese companies are supported by state-owned financial institutions, and are able to continue their operations in spite of losses for many years.

(February 10, 2005) San Jose, Calif. &#8212 Worldwide silicon wafer area shipments hit 1,486 million sq. in. in the fourth quarter of 2004, down 9% from the prior quarter, but up 7% from the fourth quarter of 2003, according to the SEMI Silicon Manufacturers Group (SMG).