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

To: advocatedevil who wrote (50914)	8/21/2001 6:00:44 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 70976

Fabless companies get lower foundry prices than IDMs, says Q2 survey Quarterly wafer pricing report attempts to track foundry trends with integrated device manufacturers, fabless chip houses By J. Robert Lineback Semiconductor Business News (08/21/01 17:12 p.m. EST) DALLAS -- Fabless semiconductor companies appear to be getting lower prices for processed 8-inch wafers from foundry suppliers compared to integrated device manufacturers, which outsource some production to foundries but continue to operate their own chip plants. A new survey, conducted in the second quarter by the Fabless Semiconductor Association, shows IDMs spending an average of $1,958 for 8-inch (200-mm) wafers, processed with 0.25-micron technology. Fabless chip companies were paying an average of $1,857 for quarter-micron wafers, according to the Q2 survey. But the survey results, which were announced today, show IDMs with a foundry price advantage at 6-inch (150-mm) wafers, which are mostly likely used to fabricate mature products in high volumes. The survey shows IDMs spending an average of $576 each for 6-inch foundry wafers across all process nodes with two layers of metal vs. the fabless average price of $628. While releasing the results of the new wafer pricing report, the Fabless Semiconductor Association said its Q2 survey was increased to include IDMs for the first time. The Q2 survey also included nearly twice the number of fabless semiconductor companies compared to the trade group's first wafer pricing survey, which was conducted in Q1 this year. In addition, the trade group said it changed its survey in Q2 to eliminate a minimum wafer quantity requirement, and that modification could skew comparisons of pricing trends between the two quarters. But the Fabless Semiconductor Association said it believes the Q2 survey provides the most comprehensive benchmark for the chip industry on foundry pricing for processed wafers. The trade group said it plans to continue expanding its quarterly survey to include more IDMs and fabless semiconductor participants. The Q2 survey was based on responses from 79 fabless semiconductor companies and nine IDMs, said the group. Generally, the Q2 survey showed a downward trend in foundry wafer pricing, which could be expected because the chip industry is in its worst recession ever. Pure-play silicon foundry companies are now operating at their lowest fab utilization levels--between 25-to-40% of installed capacity. Foundries are facing severe price erosion in many mainstream process technologies, according to managers and industry analysts. Fabless participants in the FSA wafer pricing survey said they spent an average of $2,570 for 8-inch wafers processed with 0.25-micron technologies in the first quarter. The average price of 0.25-micron eight-inch wafers fell nearly 28% to $1,857 in the second quarter, according to the new survey. The Q2 survey shows IDMs were paying foundry suppliers an average of $1,375 for processed 8-inch wafers in 0.35-micron technology vs. the fabless price of $1,285. Copper-processed 8-inch wafers for fabless companies were priced at an average of $3,223 in Q2, a decline of 11.9% compared to $3,657 in Q1, said the survey. Eight-inch wafers with aluminum metal interconnects were priced at an average of $1,697 in Q2 vs. $2,374 in Q1 this year, according to fabless foundry customers responding to the FSA survey.