MANILA, Philippines The top two foundries, Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) and United Microelectronics Corp. (UMC), have been lengthening lead times for their products as they increase their manufacturing capacity utilization rates due to increased orders.
Last quarter, the companies featured delivery times ranging from six to seven weeks. However, their lead times have been adjusted from eight to nine weeks, due to some utilization realignments. As such, some of the 6-inch wafer fabs now have 10-week lead times.
Next quarter, TSMC expects its utilization rates to increase from 80 percent to 90 percent. Similarly UMC expects to increase its utilization rate in the second half of the year from 60 percent to 80 percent.
The expectations come despite foundries having suffered more than other sectors in terms of manufacturing capacity utilization during the first quarter of 2005.
Both companies are taking advantage of the increasing demand, with analog ICs, voice ICs and LCD driver ICs being the most in-demand. The PC sector is also anticipated to begin ordering larger volumes in the third quarter.
This article was contributed by sister publication EE Times-Asia.