June 10, 2005 — Although China currently accounts for a relatively small share of the world semiconductor total, 20 new fabs are expected to be built between 2005 and 2008, according to a report from SEMI, the semiconductor industry association. Furthermore, claims the report, the rate at which new fabs and packaging plants are being built in China is faster than that of other parts of the world.

In 2004, equipment sales in mainland China were worth $2.73 billion while the market for used and refurbished equipment was worth $180 million, according to the report. Fab materials sales were worth $391 million, while the packaging materials market reached $781 million.

In addition, the report finds that the number of silicon wafers consumed in China increased dramatically. While the first 300mm fab began pilot production in 2004, the highest growth rates of wafer consumption are in 150mm and 200mm wafers, which increased 73 percent and 98 percent respectively from 2003 to 2004.

– David Forman