November 8, 2007 – Wafer shipments were down slightly in 3Q from the prior quarter, fulfilling expectations of slowing wafer demand that will result in 8% growth in 2007, slightly lower than previous expectations, according to data from SEMI’s Silicon Manufacturers Group (SMG).

Wafer shipments tallied 2174 millions of sq. in. (MSI) in 3Q, a -1.2% decline from 2Q, and about 4.8% higher than 3Q06. Such a slowdown is “in line with the historic pattern,” according to Volker Braetsch, chairman of SEMI’s SMG and VP at Siltronic AG, in a statement, attributing this to a decline in shipments of smaller wafers, and continued growth in shipments of larger 300mm wafers.

In October SEMI projected 9% growth in wafer shipments this year. But following 12% sequential growth in both 1Q and 2Q, getting down to 8% for the year will mean slow or flat growth through 2H07. And after the -1.2% decline in 3Q wafer shipments, that means flat or a slight (<1%) decline in shipments in 4Q.

SEMI SMG also is projecting mid-single digits over the next couple of years, following a 20% surge in 2006.

Quarterly silicon area shipment trends
(Silicon shipments in MSI)

Quarter……….Total…………..vs. Q-Q…………..vs. Y-Y

1Q00……………1274………………NA…………………NA
2Q00……………1373……………..7.8%……………….NA
3Q00……………1457……………..6.1%……………….NA
4Q00……………1448…………….-0.6%……………….NA
——————————————————————–
1Q01……………1250…………..-13.7%…………….-1.9%
2Q01…………….988……………-21.0%……………-28.0%
3Q01…………….824……………-16.6%……………-43.4%
4Q01…………….878………………6.6%…………….-39.4%
——————————————————————–
1Q02……………1011…………….15.1%……………-19.1%
2Q02……………1273…………….25.9%…………….28.8%
3Q02……………1263……………..-0.8%……………..53.3%
4Q02……………1134……………-10.2%…………….29.2%
——————————————————————–
1Q03……………1175……………..3.6%…………….16.2%
2Q03……………1273……………..8.3%………………0.0%
3Q03……………1307……………..2.7%………………3.5%
4Q03……………1392……………..6.5%…………….22.8%
——————————————————————–
1Q04……………1529……………..9.8%…………….30.1%
2Q04……………1619……………..5.9%…………….27.2%
3Q04……………1629……………..0.6%…………….24.6%
4Q04……………1486…………….-8.8%………………6.8%
——————————————————————–
1Q05……………1465…………….-1.4%……………..-4.2%
2Q05……………1606……………..9.6%……………..-0.8%
3Q05……………1748……………..8.8%………………7.3%
4Q05……………1826……………..4.5%…………….22.9%
——————————————————————–
1Q06……………1884……………..3.2%…………….28.6%
2Q06……………1966……………..4.4%…………….22.4%
3Q06……………2074……………..5.5%…………….18.6%
4Q06……………2070…………….-0.2%…………….13.4%
——————————————————————–
1Q07……………2100…………….1.4%………………11.5%
2Q07……………2201…………….4.8%………………11.9%
2Q07……………2174……………-1.2%……………….4.8%

Source: SEMI