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To: DJBEINO who wrote (7267)	4/13/2000 10:45:00 AM
From: DJBEINO	Respond to of 9582

IDC Predicts the Dedicated Foundry Market Will More than Quadruple to $36 Billion by 2004 MOUNTAIN VIEW, Calif., April 12 /PRNewswire/ -- As a result of weak financial performances during the 1996-1998 semiconductor recession, the large integrated semiconductor manufacturers are now turning to foundries to outsource semiconductor production at an unprecedented rate. This influx of activity will ignite revenue growth and generate a $36 billion-plus market worldwide by 2004 -- up from under $7 billion in 1999, according to IDC. ``The surge in strategic outsourcing by integrated manufacturers is being felt by all major dedicated foundries and will underpin high growth in the merchant foundry business. In fact the rate of value gain is so rapid that foundries seem bound to continue to gain share well into the new century,' said Mario Morales, director of Semiconductors research at IDC. ``This growth will reshape the future of semiconductor manufacturing, and strategic outsourcing will become a long-term solution to the cost penalties of in-house fabrication.' To prepare for the surge in demand, the leading dedicated foundries are initiating ambitious capacity expansion plans and aggressive technology migrations. Because of this aggressive expansion, the dedicated foundries will contend for the top spots in revenue share among the entire semiconductor industry. Foundry-fabricated semiconductors currently account for 12% of the market, but this share will more than double to 26% by 2004. Three companies -- TSMC, UMC, and Chartered -- will benefit the most from this increased share. Collectively, they account for 69% of foundry volume today, but their share will increase to 88% by 2004. These three companies are in an advantageous position due to their strong technological, manufacturing, and financial capabilities; successful strategic alliances; and aggressive capital investment programs. In addition, they have clustered fabs in locations favored by well-developed assembly industries, high-volume local semiconductor markets, and solid infrastructure. IDC recently published Strategic Drivers of the Dedicated Foundry Market. This special report analyzes current and future conditions in the dedicated foundry market, including trends causing the manufacturing shift, foundries' share of the semiconductor market through 2004, strategic alliances, and supply and demand trends. To order a copy of the report, contact Patrick Steeves at 1-800-343-4952, ext. 6787 or at psteeves@idc.com. biz.yahoo.com