TSMC is
still adding capacity, despite widespread industry concerns that
the foundry industry is cutting back on capex in order to squeeze
higher prices per wafer.
According to TSMC's Q208 report, the company currently has the
capacity to run 2.3m 8 inch equivalent wafers which is 6 per cent
more than it had in Q1.
TSMC's intention is to raise the Q2 figure by 5 per cent in Q3
to reach capacity of 2.4m 8 inch equivalent wafers in Q3.
Total capacity for 2008 is expected to reach 9.4m 8 inch
equivalent wafers, which is 13 per cent up on the 8.3m wafers
processed in 2007.
12 inch wafer capacity in 2008 will increase by 27 per cent in
2008 over 2007, says TSMC.
Despite thins, according to Europe's leading semiconductor
analysts, Future Horizons, capacity won't meet demand next
year.
"It's the first time the semiconductor industry has cut back on
capital investment at a time when capacity is at its tightest",
says Malcolm Penn, CEO of Future Horizons, "they're saying: 'I've
got too little capacity so I'm stopping investing'. While
utilisation rates are high, the capex rate is low."
The consequence will be seen next year with a shortage of
capacity, reckons Future Horizons.
"Shortage of capacity in 2009 is inevitable", says Penn,
"there's nothing you can do about it. There will be wafer
allocation there will be price increases people will have to fight
for the wafers. The fabless will be competing alongside the
IDMs."
See also: Mannerisms, the blog of David
Manners. Updated twice daily, it's the distinctive, entertaining,
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