Semico Study Looks at Wafer Demand by End Markets

End Markets Tell A Story

Phoenix, Arizona March 31, 2005 - The digital home and digital convergence topics have been gracing popular press and the consensus tells us the end markets have a story to tell. The latest research report by Semico answers what kind of impact this will have on wafer demand. It provides a comparison of wafer demand by technology for the overall semiconductor market, the ‘traditional’ markets and for the new markets.

“Consumer products and automotive applications are continuing to fuel growth of companies producing devices catering to entertainment and lifestyle ease,” said Joanne Itow, Managing Director at Semico Research Corp. “These end markets, which Semico refers to as the “fun and games” sector, are still far behind in semiconductor sales revenues when compared to the traditional ‘bread and butter’ computing and cell phone markets. Semico’s analysis of the traditional markets, indicates the manufacturing needs are different from the bulk of the semiconductor market.”

The highest value chips in PC’s, cell phones and workstations are being supplied by semiconductor giants such as Intel, Samsung, and Texas Instruments. On the other hand, there is another 60% of the market that will continue to grow and provide opportunities for small to medium sized semiconductor companies.

According to Semico’s research, wafer demand reached 103.7 million 200mm equivalent wafers in 2004, up 26% from 2003. Between 2004 and 2009, wafer demand will grow at a CAGR (compound annual growth rate) of 8.8%.

One of the questions being asked today is whether expensive leading edge technology is actually providing a return on investment. Have companies pushed technology beyond the point of financial benefit? This study does reveal that overall revenue per wafer has experienced a rocky road. But the key is to look at revenue per wafer by semiconductor product categories. Certain device segments are being squeezed more than others.

This study is available for immediate delivery for $3500. To purchase, please contact Jim Feldhan at 602-997-0337 or jimf@semico.com, and reference MA101-05, Wafer Demand: 2005-2009, End Markets Tell a Story.

About Semico
Semico Research Corp is a 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.

www.semico.com