UPDATE 1-Global chip plant Q1 usage rate falls to 89.5 pct
Wed May 24, 2006 12:08 AM ET
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TOKYO, May 24 (Reuters) - The utilisation rate of the world's microchip factories fell in January-March for the first time in four quarters, a global semiconductor industry group said on Wednesday.
The utilisation rate was 89.5 percent in the quarter, down from 91.8 percent in the October-December quarter.
One analyst said that the decline resulted from seasonal factors and that the semiconductor market itself was still upbeat.
"We are optimistic about market conditions," said Masahiko Ishino of Mitsubishi UFJ Securities. "Many chip makers are in good shape because of strong demand and their efforts to increase market share."
The data was published by the Semiconductor International Capacity Statistics (SICAS) group, which comprises about 40 major chip makers, including Intel Corp. (INTC.O: Quote, Profile, Research), Samsung Electronics Co. Ltd. (005930.KS: Quote, Profile, Research) and Texas Instruments Inc. (TXN.N: Quote, Profile, Research).
Utilisation rates above 90 percent can encourage chip makers to build new factories, a positive development for suppliers of tools used to make microchips such as Applied Materials Inc. (AMAT.O: Quote, Profile, Research) and Tokyo Electron Ltd. (8035.T: Quote, Profile, Research).
Capacity for all integrated circuits rose to 1.70 million silicon wafer starts per week in January-March from 1.63 million per week in October-December, SICAS said.
Actual wafer starts, which reflect demand for chips, amounted to 1.52 million a week, compared with 1.50 million in the previous quarter.
A wafer start is a lengthy process during which chip circuits are etched onto silicon wafers. |
