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Technology Stocks : Amkor Technology Inc (AMKR)

AMKR 34.92

+3.3%

Nov 26 3:59 PM EST

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To: tech101 who wrote (348)	8/23/1999 7:38:00 PM
From: tech101	Read Replies (1) of 1056

Foundry Demand by Fabless Companies Rises Faster Than Expected Story posted 3:45 p.m. EST/12:45 p.m., PST, 8/23/99 SAN JOSE -- A new survey of fabless chip companies shows demand for silicon foundry services slightly higher than expected in 1999. A recent update to the 1999 wafer demand survey by the Fabless Semiconductor Association shows member companies predicting a 50% increase in wafer requirements this year vs. the 41% growth predicted in the original poll. The increase in wafer foundry demand by fabless chip houses was attributed to stronger growth in IC consumption by system houses, especially those participating in communications and networking markets. In April, the Fabless Semiconductor Association reported that its annual survey showed 82 companies expecting to purchase 1.5 million 8-inch equivalent wafers from foundries in 1999. That total represented a 43% increase in wafer demand from 1998 levels. The update survey, completed at the end of July, included 78% of the companies participating in the original poll. These companies said their wafer purchases would grow by 50% over last year's levels instead of a 41% increase forecasted earlier this year. With more chip suppliers turning to third-party foundry companies for processed wafers, concerns are growing about the availability of fab capacity as semiconductor demand recovers from the 1998 recession. A number of large established chip makers--such as Motorola Inc.--have increased their use of outside wafer foundries, and fabless chip companies are facing more competition for advanced processes worldwide. "The FSA is working closely with its foundry partners to ensure there will be sufficient capacity to meet the burgeoning demand from fabless companies," declared David Angel, chairman of the trade group. "We believe the foundries are committed to capital spending for the necessary expansion and several have adopted aggressive growth plans to support the industry upturn." From EE Times

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