SEMI: Market to bottom out by 4Q08, rebound in 2009

May 27, 2008 — /SEMI/ — SAN JOSE, CA — According to the World Fab Forecast report, recently released by SEMI, spending on worldwide fabs equipping is expected to show declines of about 17 percent in 2008, as more companies are forced to postpone fab projects due to global economic uncertainties. In 2009, however, the group expects to see a rebound with double-digit growth of more than 12 percent.

Regions reflecting this trend most dramatically include Southeast Asia and Taiwan, which will likely experience declines of 40 percent and 33 percent respectively this year, but are expected to recover in 2009 with significant positive growth of more than 50 percent and 80 percent, respectively.

In the Americas, fab equipment spending is expected to decline over the next two years, while China and Europe/Mideast are expected to see growth both years. Spending in Japan and South Korea is projected to remain slow, but should improve from negative double digits in 2008 to negative single digits in 2009.

The biggest three spenders in 2008 for equipping fabs are Samsung, Flash Alliance, and Intel. Though most companies are investing in non-U.S. fab opportunities, Samsung is making significant investment into its 300-mm megafabs in Austin, TX, and Intel continues to invest in its Arizona and New Mexico fabs. In 2009, Rexchip, TSMC, UMC, Promos, and Hynix are expected to join Samsung, Flash Alliance, and Intel as key spenders on fab equipping.

In the regional construction of new fabs, only Southeast Asia and South Korea are expected to show positive growth in 2008. Southeast Asia should see greater than 160 percent growth in spending on fab construction projects, due mainly to IM Flash’s plan for a new megafab in Singapore.

After a year of very strong capacity growth in 2007 of about 17 percent, global fab capacity is projected to slow slightly, but is expected to post growth in the high single- to low double-digits over the next two years. In addition, the overall capacity of volume fabs for 300-mm is expected to surpass 200-mm capacity by the third quarter of 2008. Looking forward, capacity for 200-mm volume fabs will remain at the same level, while capacity for 300-mm volume fabs is expected to grow consistently in the double digits with more than 2.5x fewer fabs.

The SEMI World Fab Forecast provides high level summaries and graphs; in-depth analyses of capital expenditure, capacity, technology and products, down to the detail of each fab; and forecasts for the next 18 months. These tools are invaluable for understanding how 2009 will look, and learning more about capex for construction projects, fab equipping, technology level, and products.

About SEMI
SEMI is the global industry association serving the manufacturing supply chains for the microelectronic, display, and photovoltaic industries. SEMI member companies are the engine of the future, enabling smarter, faster, and more economical products that improve our lives. Since 1970, SEMI has been committed to helping members grow more profitably, create new markets andmmeet common industry challenges. SEMI maintains offices in Austin, Beijing, Brussels, Hsinchu, Moscow, San Jose, Seoul, Shanghai, Singapore, Tokyo, and Washington, D.C.



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