June 10, 2005 — A new report indicates that 20 new fabs are expected to be built in China between 2005 and 2008, with many of the projects to be equipped with used and refurbished equipment. SEMI’s China Capital Equipment and Electronic Materials Market Outlook also says that in 2004, new semiconductor equipment sales in mainland China reached US$2.73 billion, with used/refurbished equipment sales estimated at US$180 million.
China’s semiconductor manufacturing is a relatively small share of the world total, but the number of new fabs and packaging plants are increasing relative to other market regions. Furthermore, the number of silicon wafers consumed in China in 2004 increased dramatically, while the first 300mm fab began pilot production.
The report, available from SEMI, identifies important semiconductor market trends and forecasts for the markets in China for equipment, fab materials, packaging materials, indirect materials. Some of the key findings include:
-Installed 200 mm and 300 mm wafer capacity at the end of 2004 was equivalent to 106 million square inches (MSI) per year.
-Many of the 150 mm (and smaller diameter) fabs have been equipped with used or refurbished equipment.
-Chinese equipment companies and related institutes have lobbied the central government to invest in R&D for high-end tools such as steppers and etchers for 90nm node/300mm processing
-The local supply chain remains immature because of financial/capital considerations and current limitations with locally-available skilled talent and some multinationals are cautious in working with local companies because of intellectual property concerns.
-China is home to over 35 domestic, joint ventures and multinational semiconductor manufacturers with wafer fabrication plants.
-There are approximately 200 assembly and test companies; 20 multinational packaging materials suppliers; and 40 domestic manufacturers of equipment for the semiconductor and related microelectronic industries in China.