Looking at the future of China's semiconductor equipment sales forecast

International semiconductor equipment and Materials Association (SEMI) published before 2006, forecast, to 2008, total sales of China semiconductor equipment is expected to be $6 billion 600 million, the previous few months forecast slightly lower. From the point of view of capital expenditure on semiconductor equipment, SEMI is expected in 2006 the figure will rise, but in 2007 this year, basically flat. SEMI said, is expected in 2006 Chinese overall semiconductor equipment spending will grow from $1 billion in 2005 to $2 billion 30 million in 2007 rose slightly to $2 billion 50 million, and US $2 billion 560 million in 2008.

SEMI Chinese President Ding Huiwen said, "the trend of investment China evolve, many primary projects compared to before, many of the more promising future IC project will be located in China. It is easier to raise funds and get government support for the wafer projects that bring advanced technology and significant foreign investment." At the same time, China's capital expenditure on semiconductor equipment is expected to jump in 2006, but is expected to slow growth in equipment market spending in 2007.

SEMI in early 2006 forecast, China 2008 semiconductor equipment spending in 2006 will reach $7 billion 400 million, about $870 million is expected to increase than the last number. In 2004, China's semiconductor industry is developing rapidly, the Group believes that the Chinese market has high hopes. But then many wafers failed to start as planned, so the number of semiconductor equipment spending has shrunk.

But if the wafer plant construction and other infrastructure spending on R & D, SEMI is expected to Chinese during the expenditure will exceed $9 billion 800 million. A separate device, SEMI believes that China's annual market purchases amounted to $3 billion, accounting for the proportion of the world's total from 6% in 2006 to 2009 of 7%. If China's semiconductor market is booming again, this is a conservative estimate.

SEMI said 300 mm Fab 70% will promote the sales of equipment, the next three years, at least five 300 mm Fab in the construction and installation of equipment, including foundry SMIC, memory maker STMicroelectronics and IDM/ foundry companies Huahong NEC. At the same time, SEMI said SMIC will account for about half of the total capital expenditures in 2006 and 2007. Allegedly, the new 300 mm wafer plant equipment spending will dominate the future market, entry-level technology for the process of 0.13 micron node.

SEMI said, now China annual new fabs to bring the capacity increase began to reflect the true market demand, to 2008, the annual production capacity is expected to grow 16%. Expected in the next three years, semiconductor material spending will grow steadily. Since the 2006 construction of the 300 mm wafer plant will be mostly in operation in 2007, wafer semiconductor material spending in 2007 may be increased by more than 58% in 2006.

China, but new Fabs and semiconductor manufacturing equipment is not as expected, long-term to maintain rapid growth, many mainland chip factories are trying to profit. The Chinese government plans to build a number of 200 and 300mm wafer fab, which is currently in the planning stage.

According to a recently published report, SEMI overall, Chinese semiconductor equipment spending 2006-2008 years will exceed $9 billion 800 million, higher than the $8 billion 700 million in 2001-2005. According to SEMI, investment in 300mm plants and advanced process technology is becoming a major factor driving the growth of China's market capital expenditures.