Chipmakers' capacity use dips in latest quarter
Wednesday November 20, 12:35 am ET
TOKYO, Nov 20 (Reuters) - The world's chipmakers used less of their production capacity in July-September than in the prior quarter, an industry group said on Tuesday, giving the latest sign of a slowdown after a rebound early in the year.
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Semiconductor manufacturers' capacity utilisation rate dipped to 86.3 percent in the third quarter from the previous quarter's 87.0 percent, the highest since late 2000, according to data from Semiconductor International Capacity Statistics (SICAS).
The seven-year-old data-gathering body is backed by industry organisations in the United States, Europe, Japan, South Korea and Taiwan.
Analysts say many chipmakers need a capacity utilisation rate of about 70 percent to break even.
The semiconductor industry is struggling to bounce back from last year's record-breaking slump.
Despite a rebound in the first half, however, hopes for a full recovery this year have been dashed as demand for computers and cellphones, the main users of microchips, remained sluggish.
Total chipmaking capacity edged up 1.6 percent in the third quarter to 1.28 million wafers, calculated as eight-inch wafer equivalents.
Most silicon wafers used to make microchips measure eight inches in diameter, although some smaller sizes are still in use and a few cutting-edge factories have switched to 12-inch wafers, which yield twice as many chips and sharply cut production costs.
Capacity utilisation at more advanced facilities producing circuitry widths of less than 0.2 micron also dipped in the quarter, to 93.0 percent from 93.7 percent.
Such facilities account for 36 percent of total capacity, SICAS said.
Capacity utilisation at foundries, which make chips on a contract basis for other firms and are noted for their ability to make profits at relatively low capacity rates, fell in the latest quarter to 71.3 percent from 79.9 percent.
Several of the world's microchip foundries, including the two largest, Taiwan Semiconductor Manufacturing Co (Taiwan:2330.TW - News) and United Micro Electronics Corp (Taiwan:2303.TW - News), are in Taiwan. |
