Fab Monitor: 300 mm Fabs Beginning Construction

-- Semiconductor International, 9/1/2001

Key points

• The pace of new 300 mm fab construction has slowed.

• In June 2000, the three-month moving average of new 300 mm fabs starting construction exceeded $3B.

• The three-month moving average had fallen to less than $500M in June.

• We believe this slowdown is temporary.

• By next summer, construction could begin on as many as 12 300 mm fabs, whose cost when fully equipped could exceed $20B.

• Even with the slowdown in new 300 mm fab starts, spending for 300 mm will increase sharply.

• Spending for 300 mm equipment and facilities will more than double from $1.9B in the third quarter of this year to $4B in the first quarter of 2002.

Strategic Marketing Associates is a market research company focusing on the fab. For information about capital spending and new fab projects, call Strategic Marketing Associates at 1-831-464-2669.