SAN JOSE, Calif. — Worldwide wafer fab capacity increased just 3.3 percent in the second quarter of 2000 compared to nearly 10 percent unit volume growth in the first quarter of the year, new figures released by the Semiconductor Industry Association here. In addition, wafer fabs are tapped out, running at record levels of utilization, according to the new industry capacity report.
"Quite a few of the empty fab shells have been outfitted and expanded," said chip analyst Bill McClean, president of IC Insights Inc. (Scottsdale, Ariz.). "Capacity utilization is still high — at greater than 95 percent. And, I think it will be more difficult to expand capacity, and we should see IC pricing starting to climb."
The Semiconductor International Capacity Statistics (SICAS) report, released last week by the SIA, shows IC capacity utilization for MOS wafer fabs at an astonishing level of 95.5 percent in the second quarter vs. 95.2 percent in the first quarter. A year ago, MOS integrated circuit fabs were running at 89.9 percent of the installed capacity, according to the SICAS report. In the third quarter of 1998, MOS IC fabs were running at just 81.6 percent utilization — the low point in the last industry downturn.
Perhaps more telling than the unprecedented high levels of fab capacity utilization is the slowing of growth in wafer volumes in the second quarter. McClean and other industry analysts believe the chip industry has been able to keep pace with growing demand for ICs by equipping existing plants and upgrading older facilities. But that now appears to be ending, and the likelihood of chip shortages loom as it becomes more difficult to incrementally add new IC capacity.
The new capacity report shows total IC fab volumes reaching 2.034 million six-inch equivalent wafer starts per week in the second quarter — an increase of 3.3 percent from the first quarter's 1.969 million. In the first quarter, IC wafer starts grew 9.6 percent from 1.796 million in the fourth quarter 1999.
The growth in MOS fabs producing ICs with feature sizes below 0.3 micron grew 7.7 percent to 623,100 wafer starts per week in the second quarter vs. 578,600 in the first quarter this year. In this segment, wafer capacity surged by 25 percent in the first quarter over fourth quarter 1999.
Total MOS IC fab capacity grew 3.5 percent to 1.816 million six-inch wafer equivalents from 1.755 million in the first quarter. The first quarter's total capacity in MOS ICs was 10.7 percent higher than 1.586 million in the fourth quarter of 1999, according to the SICAS report.
Bipolar wafer processing capacity grew 1.8 percent to 313,600 five-inch equivalent wafers in the second quarter from 308,100 in the first quarter of this year, the new report said. The bipolar capacity growth rate was about even with the first-quarter rate.
RSS
Digital
10 emerging technologies to watch:
EE Times has compiled a list of emerging technologies that we think will be worth watching out for in 2010. Biofeedback or thought-control of electronics are among the contenders.
Hot applications in 2010:
We've compiled a list of 10 technology applications you should watch for in 2010, ranging from e-book readers to 3-D TVs. We examine the features that make these apps so compelling as well unresolved issues.
Top 25 predictions for semis in 2010:
2010 is just beginning to unfold in the electronics industry. Looking into our crystal ball, we have released our own chip forecasts--and other predictions--for 2010.
Seven things to fix in 2010:
The editors of EE Times came up with their own informal list of things we hope engineers fix in 2010, spanning everything from nano-lithography to space travel. What do you want to see get done this year?
'09 moves that are shaping the future:
This was a brutal year, but the industry gets a nod for showing grace under fire. Here's our Top 10 guide to the coming year, illustrating what to expect in 2010.
10 CEOs out in 2009:
It's been a tough year for the global electronics industry and CEOs. We survey the dismissal of 10 industry CEOs during the first three quarters of 2009 and what's ahead for the rest of the year.
Notable women in microelectronics:
There is no better time than a global economic recession to examine the keys to successful corporate governance. So, EE Times has compiled an international list that celebrates women who are business and technology leaders in semis.
EE Times updates Silicon 60:
Seventeen companies have been added to the lastest version of our Silicon 60 list of emerging startups. Forty-three companies survived as emerging companies that are still worth watching.
RSS| 
Digital| 
Mobile
