Taiwan, China Leading Strong Asian Semiconductor Manufacturing Growth

In-Stat: After 300mm fabs went online in 2004, semiconductor manufacturing capacity in Asia has continually grown, especially in Taiwan, and growth will continue for the next several years. With Taiwan building up foundry capacity, it has become the highest fab density area. Capacity in China will also grow rapidly over the next several years. Price advantages and emerging domestic fabless companies will allow China’s local foundries to survive.

• Due to outsourcing trends catching up with IDM, dedicated foundry companies are benefiting from outsourcing orders both from IC design houses and IDMs.

• Because of 300mm wafer fab’s capital risk and a more competitive industry environment, we will find alliance and mergers becoming a common phenomenon in this industry.

• TSMC and UMC are the leading foundries in Asia, and will account for over 50% of Asian capacity through 2009.

Semiconductor Manufacturing Capacity by Country in Asia, 2006

Publ 20060404