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‘Not much to cheer for global fab industry’

Our Bureau

Hyderabad, June 15 There is not much cheer for the global semiconductor industry for 2008. But the agony could be lifted in the coming year, according to a report by Semiconductor Equipment, Materials International (SEMI).

The World Fab Forecast of SEMI predicts the industry hitting the bottom in 2008, then a strong rebound in 2009.

The global economic uncertainties are impacting the decisions of companies and several are forced to postpone fab projects. Spending on fab equipping is expected to drop by nearly 17 per cent in 2008 (12 per cent in 2007).

The SEMI industry research and statistics report anticipates big changes for Taiwan and South East Asia in 2009.

Opportunities

The big three spenders in 2008 are Samsung, Flash Alliance and Intel. While most US companies are investing in fab opportunities outside the country, Samsung is pumping money into its 300 mm Megafab in Austin, Texas, the report states.

Samsung is spending on an even larger fab, Line 15 in Hwasung, South Korea. Intel is investing in its Fab 28 in Israel, Fab 32 in Arizona and Fab 11X in New Mexico. Flash Alliance is the star with the largest Flash-dedicated fab in the world, Fab 4 in Japan.

In 2009, Rexchip, TSMC, UMC, Promos and Hynix are projected to make their comebacks, joining Samsung, Flash Alliance and Intel as key spenders, it added.

New Fab projects

About 12 new high-volume fabs will begin construction in 2008 (22 in 2007) and about 15-18 are expected to start construction in 2009.

Related Stories:
Global semiconductor market slowing, says Gartner
To fab or not to fab...
Fab City project attracts 7 firms, $7 b investments

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