SAN JOSE, USA: In a recent analysis of the Fab Database report by SEMI, the outlook on new fab starts appears weaker, as many companies have cut back on spending to wait for the market to improve. After a forecasted 8 percent year-over-year (YoY) increase in fab construction spending in 2007, levels are likely to be flat in 2008.

Although many companies announced lower capital expenditure plans, 300mm memory fabs will continue to fuel the market next year. In Taiwan, Rexchip will start with Fab R2, a 70,000 wafers per month (wpm) fab and the second of four planned 300mm Megafabs. Winbond is likely to begin with its Fab 6 (module 2), a 54,000wpm fab.

In South Korea, Hynix will begin with Fab M11 and Samsung, which actually increased capex, may begin operation on Line 16, a 100,000wpm fab. IM Flash will start with its 300mm in Singapore, and Numonyx may begin equipping with Fab M6 in Catania.

A closer look at the fab capacity trends shows a nearly 20 percent increase this year, and another 11 percent increase in 2008. The memory share of worldwide wafer capacity is likely to increase from 38 percent this year to 41 percent in 2008.
Regionally, Japan is the leader in installed fab capacity with over 3.5 million wpm and over 3.8 million wpm, in 2007 and 2008 respectively, (in 200 mm equivalents). Taiwan and South Korea follow, with capacities of 2.5 million wpm and 2.6 million, respectively, in 2007 and 2.8 million to 2.7 million in 2008.

The US is the region with the fourth largest installed capacity base with 2.4 million wpm in 2007 and 2.7 million wpm forecasted for 2008.