Fab Update

-- Semiconductor International, 1/1/2001

2001: New Capacity Coming Online

Key points:

• A record level of new activity will keep capital spending positive in 2001 if there is no recession in the U.S. economy.
• As many as 44 new fabs will begin production in 2001.
• The monthly capacity of these fabs will be more than 1M 200 mm equivalent wafers a month.
• New capacity coming online in 2001 will be 50% more than in 2000, which in turn was more than double the capacity that came online in 1999.
• Such a large amount of capacity coming online in 2001 will force some pushbacks and slowdowns in how quickly chip companies ramp capacity.
• If such pushbacks and slowdowns are not too severe, we expect that capital spending will increase by 10% in 2001.

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.