Date: 08/09/2010

Equipment spending for front-end semiconductor fabs to increase by 133% in 2010

SEMI World Fab forecast released at the end of August has suggested that there could be a 133% increase in equipment spending for Front End semiconductor fabs in 2010 and about 18% growth in 2011. The worldwide installed fab capacity (without Discretes) is expected to grow by 7% in 2010 and 8% in 2011. The spendings on Fab construction will increase by 125% in 2010 and a further 22% in 2011. SEMI also forecasts that for both 2010 and 2011, over 150 fab projects will contribute an estimated $83 billion in spending. The projects include construction projects and equipment spending for high volume, smaller capacity, MEMS, and Discrete, including LED, fabs.

World Fab Forecast report says that a total of 54 construction projects will be underway in 2010s, thus resulting in spendings of $4.5 billion. About half of these projects are for LED facilities (mostly in China). In 2011, fewer but larger fabs will carry higher construction costs, about $5.5 billion.

Spending on equipping fabs will increase to an estimated $34 billion in 2010. Compared to 2007, 2010 spending will be 11% lower. The World Fab Forecast report predicts spending in 2011 to increase 18 percent, bringing total spending to $39B, finally surpassing 2007 spending levels.

SEMI's World Fab Forecast also provides details of facilities beginning operations in 2010 and 2011. By the end of 2010, about 22 facilities will begin operations. Analyzed by sector, half of these are LED, six are Foundries, three are Analog and two are Logic. No new Memory fabs will begin operation in 2010. In 2011, another 28 facilities are expected to begin operations, including four Memory fabs.

Worldwide installed fab capacity (without Discretes) is expected to grow by 7% by the end of 2010 to 14.4 million 200 mm equivalent wafers per month (wpm), and by another 8 percent in 2011 to 15.8 million wpm. The Memory sector accounts for the largest share of worldwide installed capacity, about 41 percent in both 2010 and 2011. Foundry capacity follows having grown their market share from 24 percent in 2009 to 26 percent in 2011.

For more information visit: www.semi.org.