SEMICONDUCTOR INDUSTRY
UPDATE
June 2016
McIlvaine Company
TABLE OF
CONTENTS
GLOBALFOUNDRIES to Expand with 300mm Fab in Chongqing
Equipment
Spending Up: 19 New Fabs and Lines to Start Construction
Company plans new manufacturing facility and
additional design capabilities to serve customers in China.
GLOBALFOUNDRIES announced the signing of a
memorandum of understanding to drive its next phase of growth in China. Through
a joint venture with the government of Chongqing, the company plans to expand
its global manufacturing footprint by establishing a 300mm fab in China.
GLOBALFOUNDRIES is also investing in expanding design support capabilities to
better serve customers across the country.
“China is
the fastest growing semiconductor market, with more than half of the world’s
semiconductor consumption and a growing ecosystem of fabless companies competing
on a global scale,” said GLOBALFOUNDRIES CEO Sanjay Jha. “We are pleased to
partner with the Chongqing leadership to expand our investment in support of our
growing Chinese customer base.”
The initial plan of the project includes
upgrading an existing semiconductor fab to accommodate the manufacturing of
300mm wafers using GLOBALFOUNDRIES’ production-proven technologies from its
Singapore site. The proposed joint venture will provide immediate access to a
state-of-the-art facility, accelerating time-to-market with production planned
for 2017.
“In recent years, Chongqing has followed the
cluster model to vigorously develop the electronic information industry,
becoming one of China’s most important locations for intelligent end products
manufacturing,” said Huang Qifan, Mayor of Chongqing. “During the period of
China’s thirteenth five-year plan, Chongqing will continue to develop the
intelligent IC and other strategic emerging industries, and promote sustained
and healthy economic development in the region. GLOBALFOUNDRIES is a
world-famous IC manufacturing company, and we welcome them to participate
through cooperation to achieve mutual benefit and win-win. Cooperation between
the two parties will help to enhance the production of intelligent IC technology
in Chongqing, further improving the electronic information supply chain in
Chongqing and the rest of China.”
GLOBALFOUNDRIES continues to strengthen its
sales, support, and design services offerings in China, doubling over the past
year with plans for continued growth. The company’s current presence is anchored
by world-class design centers in Beijing and Shanghai, which have extensive
expertise in custom designs supporting a robust ASIC platform, coupled with
foundry design capabilities for a variety of technology nodes. These
capabilities are complemented by key regional partners in its design and IP
ecosystem.
SEMI
announced that 19 new fabs and lines are forecasted to begin construction in
2016 and 2017, according to the latest update of the SEMI World Fab Forecast
report. While semiconductor fab equipment spending is off to a slow start in
2016, it is expected to gain momentum through the end of the year. For 2016, 1.5
percent growth over 2015 is expected while 13 percent growth is forecast in
2017.
Fab equipment
spending ─ including new, secondary, and in-house ─ was down 2 percent in 2015.
However, activity in the 3D NAND, 10nm Logic, and Foundry segments is expected
to push equipment spending up to US$36 billion in 2016, 1.5 percent over 2015,
and to $40.7 billion in 2017, up 13 percent. Equipment will be purchased for
existing fabs, lines that are being converted to leading-edge technology, as
well as equipment going into new fabs and lines that began construction in the
prior year.
Table 1 shows
the regions where new fabs and lines are expected to be built in 2016 and 2017.
These projects have a probability of 60 percent or higher, according to SEMI’s
data. While some projects are already underway, others may be subject to delays
or pushed into the following year. The
SEMI World Fab Forecast
report, published May 31, 2016, provides more details about the construction
boom.
Breaking down the 19 projects by wafer size, 12 of the fabs and lines are for
300mm (12-inch), four for 200mm, and three LED fabs (150mm, 100mm, and 50mm).
Not including LEDs, the potential installed capacity of all these fabs and lines
is estimated at almost 210,000 wafer starts per month (in 300mm equivalents) for
fabs beginning construction in 2016 and 330,000 wafer starts per month (in 300mm
equivalents) for fabs beginning construction in 2017.
McIlvaine Company
Northfield, IL 60093-2743
Tel:
847-784-0012; Fax:
847-784-0061
E-mail:
editor@mcilvainecompany.com
Web site:
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