TOKYO — Seeking to meet growing demand for 300-mm wafers, leading wafer supplier Shin-Etsu Handotai Co. Ltd. (SEH) will expand its factory and construct a new 300-mm wafer factory in Vancouver, Wash.
SEH's parent company plans about a $1 billion investment, the company's largest for wafers, to boost 300-mm wafer production. Production will increase by 200,000 wafers to 500,000 a month by the fall 2006.
The chip industry slowed in the second half of 2004 and analysts expect the slowdown to continue into 2005. "Total demand for wafers has reached to a plateau, but 300-mm wafer demand is increasing," said a spokesman of Shin-Etsu Chemical.
The supplier's plan consists of expanding its factory in Shirakawa, Fukushima Prefecture along with construction of the new Vancouver factory. The new plant will be SEH's first overseas 300-mm wafer fab. The capacity of the Vancouver factory has not disclosed.
SEH estimates that 300-mm wafer demand is currently about 700,000 wafers a month. Monthly demand will grow to 900,000 wafers by the end of next year, to 1.1 million wafers at the 2006. SEH projects that demand will jump to 1.4 million wafers in 2007.
The expansion plan will enable SEH to retain its position as top supplier with about 45 percent of the 300-mm wafer market.
After 2007, SEH said it will again expand capacity to about 700,000 wafers a month by expanding capacity at the Vancouver factory.
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