Global semiconductor capacity utilization fell to the lowest level in two years

Holland semiconductor international capacity statistics Association released the latest statistics show that the rate fell for third consecutive quarters by the global semiconductor production capacity of the first quarter, down from 86% to 84.8%, the lowest level in two years.

Chip makers, including Toshiba, Japan's second largest semiconductor maker, have been unable to invest in capacity due to falling prices and increased inventories. Samsung is expected to supply excess memory chips for PCs will continue into the third quarter of this year, and will end the oversupply situation in the fourth quarter.

Chip manufacturers in the first quarter of this year, the equivalent of 8 wafers per week, a total of 1 million 280 thousand inches of wafers, compared with the previous quarter, an increase of 1.5%, when production capacity decreased by 6.3%. This year the most widely used by the computer memory prices have dropped more than 40%, but the market research firm Gartner Dataquest predicts that the market is expected in the fourth quarter due to increased demand for personal computer and supply constraints and recovery.

Gartner forecast, the second quarter dynamic random access memory (DRAM) the average price will be compared with the first quarter fell 19.3%, but the decline in the third quarter will be significantly reduced to 3.4% decline in the fourth quarter, and rallied about 1.4%. More and more manufacturers like Samsung, DRAM, Hynix) and the United States Semiconductor micron technology, the NAND flash memory chip production capacity part of conversion to MP3 players and digital cameras and other consumer electronic products used, should improve the excess supply of DRAM. Gartner pointed out that these will help the DRAM market in the third quarter to achieve a balance of supply, and in the fourth quarter, the supply of slightly less than the situation.

Currently, the most widely used memory DDR-400 spot market price of $2.26. This price has fallen by 4.04 since the beginning of this year, $44%. DRAM price weakness so that Gu can cut its revenue forecast for the semiconductor industry. Gu to this year's global DRAM market revenue forecast, from the previous growth of 2.6%, down to shrink from $26 billion 200 million to $0.6%. Nevertheless, the demand for NAND flash memory will be stronger than expected, Gu can be optimistic about the overall semiconductor market revenue this year, is expected to hand over revenue growth of $5.9% to $232 billion 900 million.

Despite the strong demand for NAND flash memory, Gartner expects its average selling price will fall 51% this year, the price decline even more than he predicted DRAM prices fell by 35.1%. DRAM and NAND two markets will crash together in 2007, if the semiconductor company to expand production capacity expansion, the price will not be particularly good, so profit will not be easy to create.