Semiconductor units are expected to increase by 24% in 2010, while wafer demand is only going to increase by 17%. Why is wafer demand growing at a slower rate?
One reason is that the industry is in a tight capacity situation. Manufacturers find ways to be more efficient when they have to. Certain product categories are tighter than others.
Memory is one of those categories that when capacity is squeezed manufacturers find ways to improve yields and/or switch to higher densities. DRAM units are expected to grow by 17%, while wafer demand will only grow by 15%. NAND units are expected to grow by almost 16%, while wafer demand will only increase by 13.5%.
Semico data shows that the biggest area for silicon savings in 2010 is in the communication Micro Logic categories. Units are expected to grow by almost 27%, while silicon demand will only grow by 19%. More efficient production on 45nm/40nm is one of the main reasons for the more efficient use of silicon.
In addition to the tight capacity situation, silicon usage continues to be influenced by the transition to more advanced technology. Intel introduced 32nm production in late 2009. In 2009, almost 28% of all silicon was processed on 65nm technology or finer. By 2014 over 40% of all wafers will require technologies in that category.
