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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Ian@SI who wrote (47295)	5/25/2001 4:07:54 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 70976

Q1 fab utilization falls near low point of last recession But capacity for 0.3-micron and below MOS processes grows 13% from Q4, says new report By J. Robert Lineback Semiconductor Business News (05/25/01 13:40 p.m. EST) SAN JOSE -- Worldwide wafer fab utilization rates plunged to their lowest levels in two years during the first quarter of 2001, according to new industry statistics. IC wafer fabrication plants were operating at 83.7% of their installed capacity in Q1 compared to 92.8% in Q4 of 2000, said a report released by the Semiconductor Industry Association here this week. The Q1 utilization figure was just four percentage points above the lowest level recorded in the last chip recession--80.8% in the third quarter of 1998. Industry analyst believe IC fab utilization will probably slip again in the second quarter with silicon foundries being hit the hardest. In fact, Chartered Semiconductor Manufacturing Pte. Ltd. this week warned that its fab utilization would end up at about one-third its installed capacity in the current quarter (see May 21 story). The Semiconductor International Capacity Statistics (SICAS) report shows MOS integrated circuit fabs operating at 84.2% of installed capacity in Q1 vs. 93.4% in the fourth quarter of 2000. Bipolar IC fabs were operating at just 79.6% of their capacity worldwide, compared to 87.4%, said the new SICAS report. While fab utilization was falling, the IC industry was still increasing its MOS wafer-processing volumes in the first quarter. This week's report shows MOS fabs capable of fabricating 1.159 million eight-inch equivalent wafers per week in the first quarter, up slightly from 1.155 million in Q4. Bipolar wafer fab capacity fell 8% in Q1 to 298,900 five-inch equivalent wafers vs. 325,600 in Q4 of 2000, said the SICAS report. While the growth of overall MOS fab capacity was starting to ease in Q1, the addition of leading-edge production capabilities was still growing strong last quarter, said analyst Bill McClean of IC Insights Inc. "Fab capacity for 0.3-micron and below technologies increased 13% in the first quarter, over Q4," he said. "That's important because the increase was actually a little greater than the fourth quarter's increase over Q3 [in 2000]--which was a 12% increase." The report shows MOS fab capacity for new 0.3-micron and below technologies growing to 510,900 eight-inch equivalent wafers from 452,300 wafers in Q4. Compared to a year ago, 0.3-micron and below fab capacity jumped 57% in Q1 2001 compared to 325,800 eight-inch equivalent wafers in the period last year, according to the SICAS report. McClean believes total integrated circuit fab capacity utilization will drop down slightly in the second quarter to around 80%--give or take a percentage point. "The capacity utilization will probably drop below the last bottom [in the 1998 recession]. Our belief is that it could get into the high-70 percent range in the second or third quarter of this year," said the Scottsdale, Ariz.-based analyst. But looking ahead, McClean said he believes increased unit shipments and a slowdown in new fab projects later this year will eventually cause fab utilization rates to creep back up to the "mid- to high-80 percent range" by the end of 2001.