Growing demand for analog, MEMS and RF chips continues to cause acute shortages for both 200mm fab capacity and equipment, and it shows no sign of letting up.

Today, 200mm fab capacity is tight with a similar situation projected for the second half of 2018 and perhaps well into 2019. In fact, 2018 will likely represent the third consecutive year that 200mm fab capacity will be tight. The same holds true for 200mm equipment.

While the demand picture appears to be a bright spot for the industry, the situation is causing angst for many customers on several fronts. The 200mm market doesn’t involve leading-edge chips produced in 300mm fabs, but rather 200mm encompasses a huge number of devices made in older 200mm fabs at mature nodes. These products include consumer devices, communications ICs and sensors.

In 200mm, there are a number of complicated dynamics. Among them:

• IDMs and fabless design houses hope to meet demand for chips made in 200mm fabs. Yet it’s unclear if vendors can meet all demand, as worldwide 200mm fab capacity is expected to remain tight now and into the future.

• In response, GlobalFoundries, Samsung, SMIC, TowerJazz, TSMC, UMC and others are scrambling to add or find 200mm capacity. Meanwhile, SkyWater Technology, a new foundry vendor, has entered the 200mm fray.

• Even if there is 200mm capacity available, the industry is stuck as it is unable to find enough suitable 200mm fab equipment in the market.

• Then, unable to secure enough 200mm capacity or equipment, some chipmakers are re-thinking their plans about building new 200mm fabs. Instead, they may build 300mm plants.

This is a complex, anxiety-ridden situation for all parties. “We are seeing that 200mm remains oversubscribed. It’s challenging to find any additional capacity and upside,” said Walter Ng, vice president of business management at UMC. “This used to be a cyclical thing. It has now become the new norm with 200mm being fully allocated. That’s something we and others in the industry believe is going to be this way moving forward. It’s not a UMC-specific situation. This is an industry-wide situation.”

Amazingly, 200mm fabs are expected to remain viable at least until 2030 or so. As before, the challenge is to procure 200mm equipment, which is still in short supply.

In fact, 200mm equipment demand has been robust for some time, although some see a slight pause in the second half of 2018 as chipmakers weigh their 200mm fab plans. Geopolitical issues are also a factor. “200mm capacity continues to be tight,” said Joanne Itow, managing director of manufacturing at Semico Research. “The interesting thing is that demand for 200mm used equipment has subsided a bit.”

By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved