Wafer Shortages, 300 mm Delays Seen
-- Semiconductor International, 5/1/1999
A report by
industry tracker Allied Business Intelligence Inc. (ABI, Oyster Bay, N.Y.),
predicts a wafer shortage and steep price increase by the year 2000.
According to ABI, fabless semiconductor manufacturers are growing at an annual rate of 30%. As the market begins its long-awaited upswing, manufacturers could outsource as much as 10% of IC production to foundries, as they push hibernating lines into production. In its report, 'Semiconductor Wafers & Substrate Materials - World Markets 99,' ABI states that with silicon remaining the dominant material for substrates and wafers, demand for the material could reach $7 billion this year. The reclaimed wafer market is beginning to emerge as an important factor, and savings in the use of reclaimed wafers is expanding opportunities for test wafers as replacements for more expensive prime wafers and they now comprise 10% of the market.
ABI's interviews with leading industry players appear to indicate that the
transition from 200 to 300 mm may be delayed by a number of issues such as the
slump in revenues, the lack of available processing equipment, the cost of
constructing new fabs and other uncertainties. 
