Capacity Utilization and Capital Expenditure Forecast 2003-2010

Fab Database Reveals More Fabs Needed to Meet Demand

Phoenix, Arizona May 25, 2006 - In Semico’s report forecasting capacity utilization and capital expenditure through 2010, the firm pinpointed Q206 as the time when companies will pick up the pace of capacity additions. As advanced node utilization rate reaches 100%, companies are accelerating or initiating build out of existing fabs and investment in new fabs. According to Semico’s study, Capacity Utilization and Capital Expenditure Forecast 2003-2010, ‘Capex will rise in both 2006 and 2007.’

Today, Semico announced the latest tool in their manufacturing portfolio. It is a comprehensive database describing and updating data on existing fabs, ramping fabs, and planned fabs. The database also highlights display fabs and fabs closures and sales. “A review of the ramping and planned fab database substantiates Semico’s bullish outlook on fab capacity growth and capex” commented Dave Cavanaugh, Director of Manufacturing Technology at Semico. “Specifically, even with the capacity additions currently projected to come on line in the next two years, substantially more capacity must be built to meet Semico’s projected wafer demand.” Currently, the fab database indicates planned additions of 3.4 million wafers per month in 200mm wafer equivalents. Semico’s fab database reveals that the bulk of new capacity, some 69%, is projected to manufacture memory products with a trend toward NAND flash capacity addition in 2006. Furthermore, a significant amount of the new memory capacity will be built by various joint ventures underlining the great burden in financing the large new fabs (averaging over 80K WPM 200mm wafer equivalent capacity).

“The Semico Fab Database provides equipment and material manufactures as well as any company that needs to know where fabs are growing with a tool to focus and direct sales and marketing efforts” stated Mr. Cavanaugh. “Combined with our capacity utilization report series, the database confirms that a large opportunity for revenue growth for semiconductor equipment and materials manufacturers will continue through 2Q08.”

Semico’s industry-leading capex and equipment forecast is based on data and research in two parts. Part one, Capacity Utilization and Capital Expenditure Forecast 2003-2010, (Study No.MA122-06), tells the story of how Semico’s end-market-driven utilization rate results in accurate capex forecasts. Part two offers detailed worldwide fab data, Semiconductor and Display Fab Database, (Study No.MA120-06). Both are available for purchase.

For more information contact Jim Feldhan, Semico Research at 602 997-0337 or email him at jimf@semico.com.

About Semico
Semico Research Corp is a semiconductor marketing and consulting research company located in Phoenix, Arizona. Semico was founded in 1994 by a group of semiconductor industry experts. We have improved the validity of semiconductor product forecasts via technology roadmaps in end-use markets. Semico offers custom consulting, portfolio packages, individual market research studies and premier industry conferences. Visit www.semico.com for more information.

Semico Research
Phoenix, Arizona
T: 1 602 997 0337
www.semico.com

Contact:
Jim Feldhan
Semico Research Corp.
+1 602 997 0337
JimF@Semico.com