NO surprise here IMHO - in particular in commodity bizz
Utilization rates dropping at 8-inch fabs
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Hans Wu, Taipei; Joseph Tsai, DIGITIMES [Friday 11 April 2008]
Due to declining orders, utilization rates at the 8-inch fabs of DRAM makers including ProMOS Technologies, Powerchip Semiconductor Corporation (PSC) and Nanya Technology are seeing drops which are expected to have a deep impact on current operations, according to industry sources.
The 8-inch fabs are mostly unable produce standard DRAM in 2008, forcing makers to manufacture specialty DRAM or seek more clients in order to fill the gap in their capacity.
With Nanya upgrading one of its 8-inch fabs, the company has demanded its clients transfer their orders to its other 8-inch fab. However, since these clients need time to evaluate the fab, most have decided to cancel their orders, causing Nanya's orders to drop from 20,000 units to only 10,000 units.
The limited process technology at PSC's 8-inch fab means the company will not be able to switch its capacity to produce standard DRAM.
Meanwhile, ProMOS has installed 8-inch equipment at its subsidiary in Chongqing, China, but most of its clients have been unwilling to move their orders to the new China fab, while other clients, suspecting the company will soon move its whole production line to China, are therefore unwilling to place orders at the company's 8-inch fab in Taiwan. |
