Growing ASPs, coupled with the continued increase in sales of IC units, will strengthen fab capacity utilization rates, thereby fueling a forecasted upswing in the semiconductor cycle in 2006, according to Advanced Forecasting (Saratoga, Calif.).

“The current robustness of IC unit sales corroborates our forecast for fab utilization that showed growth into Q4-05. As IC units continue to grow, fab utilization rates will increase until supply is constrained, forcing prices upward,” said Rosa Luis, director of marketing and sales for Advanced Forecasting, in a statement.

“Fab capacity utilization has been an accurate measure of the health of the semiconductor industry,” Luis said. “Fab capacity stood at 1.44 million wafers per week (8-inch equivalent) and its utilization reached 89 percent in Q2-05, up from an 86 percent minimum point in Q1-05, in line with our forecast.”