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To: Proud_Infidel who wrote (3788)	1/5/2000 12:36:00 PM
From: Duker	Read Replies (1) \| Respond to of 5867

Foundry Supply & Demand: Not Just For Fabless Anymore Wednesday January 5, 12:01 pm Eastern Time Company Press Release PHOENIX--(BUSINESS WIRE)--Jan. 5, 2000--Can semiconductor manufacturers afford $2 billion fabs? As the semiconductor industry moves towards 30mm wafers, that is going to be a defining question. According to ``Foundry Supply & Demand: Not Just For Fabless Anymore,' a study just released by Semico Research Corp., total foundry wafer demand will grow at a compound average rate of 24 percent for the next five years. This study uses the fourth quarter 1999 Semico semiconductor sales forecast as an input to a wafer demand model. It then uses extensive primary research to establish a forecast for wafer production capacity, i.e. supply. Thus, the study can compare wafer supply and demand by process technology. At present, the semiconductor industry, as a whole, is still in an oversupply situation; but demand exceeds supply in certain key process technologies. The gap will increase in the next two to three years. The industry has been under-investing in capacity for at least two years, particularly in fabs at .25 micron or less. At the same time, the industry has been postponing investment in 300mm fabs. Already, under-capacity in .25 micron or smaller wafer production has been showing up in the form of increased memory device ASPs. Who will step up? The pure play foundries are beginning to invest in 300mm fabs at .18 microns. The IDMs (Integrated Device Manufacturers) are reluctant. Many IDMs may shift production to one of the pure foundries. Some smaller IDMs may have no choice. Unable to afford a $2 billion fab, they may have to go to a foundry, designing to the foundries process exactly, in order to be able to compete. According to ``Foundry Supply & Demand: Not Just For Fabless Anymore,' demand for wafers at .25 microns will increase. Where will more .25 micron wafers come from: Mini-fabs? Foundries capable of producing much smaller geometries? New .25 micron fabs? All of these issues, and more, are discussed in ``Foundry Supply & Demand: Not Just For Fabless Anymore.' This study also provides charts and tables filled with data about wafer demand by geometry, wafer supply by geometry, investments by company, and other data needed to understand semiconductor supply and demand for the five year forecast period. ``Foundry Supply & Demand: Not Just For Fabless Anymore.' is available for immediate shipment. The list price is $5,000. A follow-up foundry supply and demand study will be published in mid-year 2000. The combined price for both studies is $7,500. Semico Research Corp. is a leader in providing semiconductor market research and custom consulting. Its headquarters are in Phoenix, with offices in northern California and Boston as well as in Europe and in Japan. Other products and services are available at the Semico Research Corp. Web site, www.semico.com -------------------------------------------------------------------------------- Contact: Semico Research Corp., Phoenix Morry Marshall, 602/997-0337, ext.108 morrym@semico.com