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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Paul V. who wrote (4600)	12/24/2002 8:21:40 AM
From: Proud_Infidel	Respond to of 25522

China, Taiwan to add 33% to world wafer capacity by 2005, says report By Peter Clarke Semiconductor Business News (12/24/02 04:24 a.m. EST) SEVENOAKS, England --- Concluding that now is the time to start preparing for the 2005 semiconductor market bust, market research consultancy Future Horizons observes in its December Semiconductor Industry Update Newsletter that Taiwan is building, or plans to build, eleven 300-mm wafer fabs by 2005. The newsletter references Gordon Shen, president of the Taiwan Semiconductor Industry Association (see table below). Future Horizons points out that eleven 300-mm wafers is roughly equivalent to at least 25 advanced 200-mm wafer fabs, or a MOS capacity increment of some 200,000 200mm equivalent wafer starts per week. The market research consultancy contends that mainland China plans to build 25 advanced fabs by 2005 in its bid to 'build a national chip industry', thereby providing a similar level of additional capacity. This results in 400,000 200-mm equivalent MOS wafer starts per week by 2005, up from the current 1.2 million wafers a week level -- an increase of 33% down to China and Taiwan alone. When the expected expansion of major independent device makers such as Intel, Samsung, STMicroelectronics, Texas Instruments, and others are added, Future Horizons foresees global wafer processing capacity increasing by at least 50% between now and 2005. This may be good news for the semiconductor equipment makers but Future Horizon's asks whether this is, "another semiconductor industry disaster in the making?". “Taiwan's capital expenditure as a percent of revenues ran at 66% in 2000, and 55% in 2001, three times the normal industry average. Mainland China's figures are an awful lot higher. It rather begs the two obvious questions, where is all the necessary funding going to come from, and how is it going to be ever paid back?” the newsletter asks? Of course it might be possible for Taiwan's 300-mm wafer fabs, and China's 200-mm wafer fabs to be constructed and then not ramped to volume production at full speed, but given Taiwan's past track record and China's chip-making aspirations that is, perhaps, unlikely. Taiwan 300-mm wafer fabs plan Company Fab name Product Geometry Year TSMC Fab 12 foundry 0.13-micron 2001 TSMC Fab 14 foundry 0.13-micron 2002 TSMC Fab 15 foundry 0.13-micron 2004 UMC Fab 12A foundry 0.13-micron 2001 UMC Fab 12B foundry 0.13-micron 2004 ProMOS Fab 1B DRAM 0.14-micron 2001 Nan Ya Fab 3 DRAM 0.14-micron 2003 SiS Fab 2 logic, graphics 0.15-micron 2003 Winbond Fab 6 DRAM 0.11-micron 2004 PSC Fab 2 256-Mbit 0.13-micron 2002 MXIC Fab 4 flash 0.13-micron 2005 Source: Future Horizons, December 2002