Wafer Area Shipments Rise, SEMI Reports

Online staff -- Electronic News, 8/24/2004

Worldwide silicon wafer area shipments increased 6 percent sequentially in Q2 and 27 percent from Q2 2003, according to the SEMI Silicon Manufacturers Group (SMG) in its quarterly analysis of the silicon wafer industry.

Total silicon wafer area shipments were 1,619 million square inches during the most June quarter, up from 1,529 million square inches in shipments reported during the March quarter, the industry group said.

Silicon revenues also experienced double-digit growth from Q1 and the year-ago quarter -- up 11 percent and 24 percent, respectively -- as a result of increased prices, greater 300mm sales and overall demand, SMG reported.

“The silicon industry is experiencing robust growth, as capacity utilization tightens. The industry’s utilization has increased significantly over the past year, exceeding 95 percent in the second quarter. Prices are improving, and 300mm is a contributing factor in the product mix,” said John Kaufmann, VP of marketing for MEMC Electronic Materials and chairman of SEMI SMG, in a statement. “The silicon industry must continue to adhere to a healthy business model in order to reap the benefits of solid financial returns for future investments. Currently, capital expenditures for the industry are running below 20 percent, as the industry balances incremental capacity increases with growing demand. Productivity is stronger on a revenue per employee basis, as the industry produces greater volumes with a negligible increase in headcount by optimizing efficiency gains.”