Aug 11 2007
Amid a slowing IC market, Taiwan’s foundries are eying capacities at IDM, which will dictate Capex spending and timing of equipment orders, according to the report 300mm/Copper/Low-K Convergence: Timing, Trends, Issues, Market Analysis, recently published by The Information Network, a New Tripoli, PA-based market research company.
While the majority of foundry income is derived from fabless companies, a portion of revenues comes from IDMs (Integrated device manufacturers) that don’t have sufficient in-house capacity or technology to meet customer requirements. IDMs subcontract manufacturing to the foundries.
“We see foundries such as TSMC and UMC taking a conservative approach by pushing out equipment purchases, and not installing equipment already delivered until capacity utilization increases in their fabs," notes Dr. Robert N. Castellano, President of The Information Network.
The report notes that 300mm fab construction in Taiwan leads the world, with 31% of fab constructed in 2007 and 40% in 2008. Capex in 2007 for TSMC and UMC is estimated at $3.8 billion, representing 7% of worldwide spending.
“The bad news is that 2007 is a bust with equipment revenues dropping 2.3%. However, we see 22% growth in 2008 as pushed out orders from 2007 jumpstart the equipment market,” added Dr. Castellano.