February 14, 2008 — /SAN JOSE, CA/ — A recent analysis of SEMI fab database reports shows that spending on fab construction projects and fabs equipping will likely see double digit declines in 2008 as many fab construction projects are put on hold, pushed out to end of the year, or into 2009.
Spending on equipping fabs in 2008 is expected to decline 15 percent compared to the 9 percent growth last year. The analysis represents a downward revision of the outlook reported in the October 2007 fab database report.
The reports indicate a decline in equipment spending by almost 10 percent for foundries, about 15 percent for memory, and about 30 percent for the logic/MPU segment.
Spending on fab construction projects is expected to decline in 2008 by 9 percent, compared to the strong growth in 2007. In 2008, 12 new volume fabs are expected to start construction, which represents a total capacity addition, when fully operational, of 1.53 million wafers per month in 200-mm equivalents. The five biggest spenders on fab construction projects in 2008 are expected to be Flash Alliance (Toshiba/Sandisk JV),
Samsung, Hynix, Rexchip (Elpida/Powerchip JV) and Powerchip.
Semiconductor manufacturing capacity is projected to grow by about 11 percent in 2008, which is consistent with the numbers reported in the October 2007 edition of the report. Memory still retains the largest share of total fab capacity, and is expected to increase this year to 41 percent from 38 percent in 2007.
Memory fabs are projected to increase capacity by 18 percent year over year, followed by logic/MPU, which are expected to see five percent growth. Foundries are forecasted to add about eight percent more capacity.