The memory and foundry firms are building bigger fabs while broadline semiconductor firms such as NXP, STMicroelectronics, Texas Instruments, Freescale and Infineon are on the way to becoming fab-lite.
Three years ago, typical 300mm fabs produced 30,000 wafers per month (wpm), said SEMI, the production equipment trade body. Now "megafabs" capable of producing 100,000 to 210,000 wpm - or one million wafers per year with shorter ramp times - are under construction.
It also means fewer fabs are being built, said SEMI. At the beginning of 2006, 40 300mm fabs provided about 2 million wpm in 200mm equivalents. By the end of 2007, SEMI expects 65 300 mm fabs to be providing 5 million wpm in 200mm equivalents. By the end of 2008, 73 300mm fabs will provide over 6.2 million wpm in 200mm equivalents.
This year Qimonda is investing E2bn in a 300mm fab in Singapore, ProMOS of Taiwan is investing $1.7bn on fab capacity, Rexchip - the joint venture between Elpida and Powerchip - is spending $2bn in 2007. Samsung will spend $5bn and four other companies, including Intel, Micron, Toshiba and Hynix will each be spending over $2bn each.
Memory products will comprise about 38 per cent of all worldwide capacity this year and 40 per cent in 2008, said SEMI, with more than half of this memory capacity coming from four companies (with their joint ventures): Samsung; Hynix; Toshiba; and Micron.
Capital spending at the foundries at TSMC is about $2.7bn in 2007, said SEMI. Chartered will spend $800m, UMC plans to spend about $1.1bn, and SMIC has announced a capital budget of $720m this year.
According to SEMI, in the two years of 2007 and 2008, 25 volume fabs will come online.
