Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Fred Levine who wrote (6315)	6/22/2003 9:57:15 AM
From: Proud_Infidel	Respond to of 25522

Materials Market to Boom, Report Says Online staff -- Electronic News, 6/20/2003 The semiconductor materials market is in the middle of a five-year expansion that is exhibiting double-digit growth in several sectors, according to a report by The Information Network (TIN). The New Tripoli, Pa.-based market research company found that while the semiconductor market grew less than 2 percent in 2002 and the equipment sector dropped nearly 30 percent, the materials market is showing a 4 percent gain that will presage a nearly 10 percent growth rate for 2003. The spin-on low-k (k at less than 3.6) dielectric material sector will see the largest growth, with a compounded annual growth rate (CAGR) of nearly 30 percent between 2002 and 2005. Within this sector, the spin-on low-k with k less than 3.0 will exhibit a CAGR greater than 80 percent, TIN reported. Although its growth had stalled in recent years, CMP slurry will also be strong, tied with the movement to more expensive copper slurry, as TIN expects more than a 12 percent increase between 2002 and 2005. “There are several factors converging at this time,” said Robert N. Castellano, TIN's president, in a statement. “First and foremost, we are seeing the end of the downturn in the semiconductor market, with growth rates projected to be in the double-digit range through 2003 and 2004. Secondly, consolidation in the materials industry is reducing the number of suppliers, which should buffer pricing pressure from customers. Third, technology pushes to 0.09- to 0.11-microns are driving the need for higher priced performance materials.” Sputtering targets won't be as fortunate over the next few years, however, as the semiconductor industry moves to a chemical vapor deposition (CVD) and electrochemical deposition (ECD) environment with a combination of low-k and copper interconnects, TIN said. "We see the silicon wafer market as an under performer. While the emphasis is on 300mm wafers production, prices are unsustainably high at the current time -- 10 times the price of a 200mm wafer yet delivering only 2.4 times the total area," the market research company explained. “It’s somewhat analogous to LCD TVs. Everyone wants one but in a price-conscious market few are buying,” Castellano added. “Until prices come down to realistic levels, 300mm investment payback to wafer suppliers will remain elusive, despite it being the only profit center for now.”