Dataquest cuts silicon foundry forecast

SAN JOSE -- A slowdown in the overall IC industry has prompted Dataquest Inc. to lower its growth forecast for the worldwide silicon foundry business in in 2001 to a modest 10%. Originally, the San Jose-based market researcher estimated that the foundry business would grow 35% in 2001.

"I still think the foundry business will grow faster than the overall IC industry," said analyst James Hines, who tracks the market for Dataquest. "We still see a lot of capacity coming online in 2001 and 2002. Prices will also come under pressure."

Could Via rescue Intel's Pentium 4?

TAIPEI, Taiwan -- Via Technologies Inc. is reportedly set to roll out a PC chip set that supports Intel Corp.'s Pentium 4 microprocessor. The chip set is expected to be launched around the second quarter of this year, and it will support double-data-rate (DDR) SDRAMs. The product is expected to become the first DDR-enabled chip set for the Pentium 4.

At present, Intel provides the only chip set for the Pentium 4, which supports Rambus Inc.'s RDRAM memory architecture. In the second half of 2001, Intel will roll out "Brookdale," a chip set that supports SDRAM products for the Pentium 4.

TSMC denies reports that it's slowing 300-mm ramp

HSINCHU, TAIWAN -- Several industry sources indicated that Taiwan Semiconductor Manufacturing Co. Ltd. has reportedly scaled backed the aggressive ramp up of its 300-mm pilot line fab in Tainan, Taiwan, due to uncertain business conditions in the market. Sources added that TSMC's overall fab utilization rate has drop from 100% in late-2000 to 85% at the present time.

A spokesman from TSMC denied that the company has delayed its 300-mm fab line, but declined to comment on its fab utilization rate.

Last year TSMC said it planned to ramp the 300-mm pilot line to 4,500 wafers per month by November 2001. In mid-December, TSMC announced delivery of the first customer products on 300-mm (12-inch) wafers from the pilot line (see Dec. 18 story).

Tower's second fab will finally happen

MIGDAL HAEMEK, Israel --Tower Semiconductor Ltd.'s long await to begin construction on its Fab 2 facility is about to end. The Israeli semiconductor foundry company completed the last part of a $1.1 billion financing package for construction of the new 200-mm fab.

Tower today announced it has signed an agreement with two major Israeli banks--Bank Leumi and Bank Hapoalim--to secure $550 million in credit for the construction of its second fab. The Israeli foundry has lined up $300 million in equity investments from Alliance Semiconductor, SanDisk, Macronix, Quicklogic, and the Israel Corp., as well as a $250 million government grant.

"We plan to hold the Fab 2 groundbreaking ceremony on Jan. 31 in the presence of the President and the Prime Minister of the State of Israel and other esteemed guests," said Yoav Nissan-Cohen, co-CEO of Tower. For more than two years, Tower has been trying raise funding for its much-needed second fab, which will be built adjacent to its existing plant in Migdal Haemek.