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Silicon wafer market to see increased demands in '03

Posted: 23 Dec 2002 ?? ?Print Version ?Bookmark and Share

Keywords:silicon wafer? gartner dataquest? semiconductor?

Silicon wafer demand will begin a major expansion between 2H of 2003 and 2004, as it will be driven by a combination of a recovery of device demand and the startup of 300mm fabs, according to Dataquest Inc., a unit of Gartner Inc.

Gartner Dataquest analysts said that there will be some delays in 300mm fab projects because of feared cutbacks of capital spending by semiconductor vendors. However, there will be increased demand in 2H of 2002.

"At present, 300mm wafer demand is estimated at approximately 200,000 of wafers per month. It will grow rapidly with the reinvigoration of 300mm fab projects and is expected to reach a level of 440,000 to 450,000 wafers per month in Q4 of 2003," said Takashi Ogawa, principal analyst for Gartner Dataquest's semiconductor manufacturing research group. "Coupled with the 300mm wafer demand ramp-up, total silicon demand will expand appreciably at the annualized pace of 23 percent in 2004 and will reach 6,147MSI."

Further, fab capacity is expected to move to the Asia/Pacific region at an accelerated pace, and the region will hold a larger share of wafer demand in the world market. In contrast, Japan is seen to lose shares because of the continued relocation of electronics production, the increased use of foundry service, and consolidation of local semiconductor operations.

"Leading Japanese vendors, such as Elpida and Toshiba, recently announced their intent to invest in 300mm fabs," Ogawa said. "While the regional shift of fab capacity is an irreversible mega trend at this moment, it is worth watching how 300mm fab projects of Japanese vendors will affect the regional distribution of wafer demand in the future."





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