SEMICON Taiwan 2000 Opens With Optimistic Estimates Capital Equipment Shipments to Taiwan Surpass Japan Shipments Up Three-Fold In First Half of 2000
PR NEWSWIRE - September 13, 2000 19:25
SAN JOSE, Calif., Sep 13, 2000 /PRNewswire via COMTEX/ -- Shipments of semiconductor manufacturing equipment to Taiwan in the first half (1H) of 2000 rose almost three-fold year-on-year to US$4.8 billion, surpassing Japan's consumption in the same period and pushing Taiwan into the No. 2 position worldwide for consumption of chip-making equipment.
The world's largest chip equipment market is still North America, where shipments in 1H '00 were US$5.5 billion. However, that region's year-on-year growth rate of 72 percent was less than half Taiwan's 188 percent growth in the same period, according to figures released by Semiconductor Equipment and Materials International (SEMI) on the opening day of the SEMICON 2000 exposition in Taipei, Taiwan.
"With accelerated investment in manufacturing capacity and new technology, [this year] is shaping up to be the all-time record growth year for our industry. We expect to see Taiwan account for about 22 percent of the total global market," said Stanley T. Myers, president of SEMI, the global trade group representing chip equipment and materials companies.
Industry executives at SEMICON Taiwan 2000 were upbeat on prospects for the semiconductor industry globally and in Taiwan. Dispelling recent concerns that lower than expected cell phone shipments and softness in spot prices of DRAMs may indicate a peaking of the industry's growth cycle, the executives said such developments represented a "mid-term correction".
Strong economies worldwide, higher silicon content and a shift in the drivers of semiconductor growth should result in "at least a 2 to 3 year growth cycle," said David N. K. Wang, senior vice president at Applied Materials Inc, the world's largest chip equipment maker.
Wang said future semiconductor growth will be driven by Internet related applications and should be a global phenomena, as opposed to the market situation in the 1990s when personal computer sales in the U.S. were the main driver of chip consumption. "In 1998 there were only 150 million users on-line with the Internet. Three years from now that will increase to 600 million, two thirds outside the U.S.," Wang said.
Experts point out that Taiwan's continued growth in the Internet-driven chip industry, dominant market share in the foundry-manufacturing segment, and plans to invest in new fabrication facilities over the next two years, will ensure its place as the No. 2 market for equipment. The island's two biggest foundries, Taiwan Semiconductor Manufacturing Co Ltd and United Microelectronics Corp, generated 39 percent and 35 percent of their Q2 '00 sales respectively from communications related products, according to Merrill Lynch.
Taiwan foundries are aggressively pursuing plans to build new fabs for larger 300-mm diameter wafers. Up to 10 new 300-mm facilities are being planned by Taiwan companies over the next 2 to 3 years. The first two 300-mm plants in Taiwan, being built by foundries TSMC and UMC, are expected to begin production by Q2 next year.
A factor in Taiwan's semiconductor industry success has been national government support. "Not only do technologists and business people cooperate, but regulators and government officials have worked to support and strengthen the industry," said Myers of SEMI.
Taiwan President Chen Shui-Bian presided over SEMICON Taiwan 2000's opening ceremony on Sept. 13. President Chen said the focus on knowledge-based industries for manufacturing, job opportunities and investment was a strategy pursued by all leading nations. "As such, the progression of the semiconductor business will not only solidify long term economic prosperity in Taiwan, but also concerns the future development of the world economy as a whole," he said.
According to Taiwan's Industrial Research Technology Institute (ITRI), strengthening the Taiwan semiconductor industry is a supporting infrastructure including more than 20 wafer fabs, 127 integrated circuit design houses, about 75 IC assembly and test facilities, and more than 60 materials suppliers,
Based in San Jose, Calif., SEMI is an international trade association serving more than 2,400 companies participating in the $65 billion semiconductor and flat panel display equipment and materials markets. SEMI maintains offices in Austin, Beijing, Boston, Brussels, Hsinchu, Moscow, Seoul, Singapore, Tokyo and Washington, D.C. For more information, visit SEMI on the Internet at www.semi.org.
SOURCE Semiconductor Equipment and Materials International
CONTACT: Daniel Danzig for Semiconductor Equipment and Materials International, 925-284-7004
URL: semi.org |
