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SEMI: China's fab-tool spending flat

Posted: 14 Sep 2006 ?? ?Print Version ?Bookmark and Share

Keywords:semiconductor? Semiconductor Equipment and Materials International? SEMI? Mark LaPedus? semicon equipment?

China's semiconductor equipment capital expenditure is expected to jump this year, but tool spending is projected to be relatively flat in 2007, according to date from the Semiconductor Equipment and Materials International (SEMI) trade group.

Total fab equipment spending in China is expected to grow from $1 billion in 2005, to $2.03 billion in 2006, to $2.05 billion in 2007, and to $2.56 billion in 2008, according to SEMI.

Chinese foundry provider Semiconductor Manufacturing International Corp. (SMIC) will account for half of that spending in 2006 and 2007, according to SEMI.

But China's market for new fabs and semiconductor equipment is falling short of expectations for sizzling long-term growth, as companies juggle their need for profitability with a government directive to ramp up a host of 200mm and 300mm wafer fabs that are now on the drawing board.

Overall, Chinese semiconductor fab capital expenditures from 2006 through 2008 are expected to exceed $9.8 billion, which is larger than the total capital expenditure of $8.7 billion in last five years from 2001 to 2005, according to a new report from SEMI.

Investments in 300mm fabs and advanced process technology are becoming major drivers for capital spending in the China market, according to SEMI.

"Investment trends are evolving in China, with the future more promising for new fab projects by established semiconductor manufacturers compared to new entrants," said Mark Ding, president of SEMI China, in a statement. "Fab projects that bring advanced technology and significant foreign-investment will find financing and government support more readily available."

- Mark LaPedus
EE Times

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