News Article
2006-2008 China Fab spending to exceed US$9.8 Billion
Chinese semiconductor fab capital expenditures from 2006 through 2008 are expected to exceed US $9.8 billion which is larger than the total capital expenditure of US $8.7 billion in last five years from 2001 to 2005, according to a recent survey of major semiconductor manufacturers in China.
This is one of the significant trends found in "China Semiconductor Wafer Fab and Foundry Outlook," a comprehensive new market research report now available from SEMI. Investments in 300mm fabs and advanced process technology are becoming major drivers for capital spending in the China market, while new fab projects that lack strong government support and funding from overseas partners will see greater challenges.
"Investment trends are evolving in China, with the future more promising for new fab projects by established semiconductor manufacturers compared to new entrants," said Mark Ding, president of SEMI China. "Fab projects that bring advanced technology and significant foreign-investment will find financing and government support more readily available."
As part of the investment, at least five new 300 mm fabs are in various stages of planning, construction and equipping in China over the next three years. Spending on 300 mm equipment is expected to account for more than 70% of total new fab equipment spending by 2008.
The report is based on over 60 in-depth interviews conducted with both domestic and international companies, including semiconductor manufacturers, foundries, equipment makers, materials suppliers, fab construction companies, investment entities, industry associations and industrial parks.
By interviewing industry leaders, senior corporate executives and government officials, SEMI's report explores key factors for a fab project to be successful in China. The report also puts current fab investments into context with the macroeconomic environment in China and provides readers insight towards the long-term future of China's fab industry.
"Investment trends are evolving in China, with the future more promising for new fab projects by established semiconductor manufacturers compared to new entrants," said Mark Ding, president of SEMI China. "Fab projects that bring advanced technology and significant foreign-investment will find financing and government support more readily available."
As part of the investment, at least five new 300 mm fabs are in various stages of planning, construction and equipping in China over the next three years. Spending on 300 mm equipment is expected to account for more than 70% of total new fab equipment spending by 2008.
The report is based on over 60 in-depth interviews conducted with both domestic and international companies, including semiconductor manufacturers, foundries, equipment makers, materials suppliers, fab construction companies, investment entities, industry associations and industrial parks.
By interviewing industry leaders, senior corporate executives and government officials, SEMI's report explores key factors for a fab project to be successful in China. The report also puts current fab investments into context with the macroeconomic environment in China and provides readers insight towards the long-term future of China's fab industry.
