SEMI: 300mm Investments Continue, In Spite of Falling Memory Prices

Industry consortium Semiconductor Equipment and Materials International (SEMI) has found, based on recent analysis of its fab database reports, that despite the steep decline in memory prices, chipmakers are continuing to invest significantly in additional 300mm fab capacity.

By the end of 2008, worldwide 300mm capacity is expected to be double from the amount of capacity that existed at the beginning of this year as 25 new 300mm high-volume fabs come online, SEMI noted. Also by the end of 2008, only 73 300mm fabs are expected to be providing more than 6.2 million wafers per month marking a change in the fab landscape as fewer but larger fabs are being constructed.

With record levels reached in 2006, SEMI also expects fab construction spending to decline only slightly this year, with Taiwan and Japan accounting for the largest share of worldwide construction spending at 30 percent and 20 percent respectively, followed by China with over 16 percent.

These 300mm investments are being driven by device manufacturers' expectations for a significant increase in demand for DRAM and flash.

SEMI said it also found that even foundries have retained their ambitious capex plans for 2007 with fab construction expenditures expected to increase 40 percent to reach to record levels of $10 billion in 2008, with South Korea expected to have the largest growth followed by Southeast Asia.