Foundry Supply and Demand: Dynamic Markets Impose Hard-hitting Strategies

Phoenix, Arizona November 28, 2005 - As Semico predicted, the foundry market experienced a challenging 2005. Over capacity in the first half of the year and increased competition amongst foundry suppliers caused foundry wafer prices to collapse. However, according to Semico’s latest study on foundry supply and demand, market conditions will improve in 2006. Wafer demand will increase by 23% and total foundry revenue will increase by 29%.

So what are some of the factors impacting foundries future? What’s around the corner for the foundries and their customers?

How long will foundries be hampered by price competition that is causing margins to degrade right when economies of scale are being achieved? In the past ‘sweet spot’ meant more efficient manufacturing for the customer and higher margins for the foundry. Today it seems to signal price erosion and lower ROIs. What are the risks associated with R&D and customer adoption rates that are the critical issues related to new technologies?

But even beyond the foundry issues, the industry has crossed a major hurdle moving past the 100nm process technology node. Design and manufacturing is being challenged by the requirements for high performance and low power products at a reasonable cost. Does 90nm, 300mm wafer production meet the needs of today’s IDM and fabless customer?

Semico offers two products which address these issues. A report Foundry Supply and Demand: Dynamic Markets Impose Hard-hitting Strategies addresses foundry demand by company type and process technology, including detail by fabless, IDM, and system house demand. It also includes a review of foundry demand by end use market. A foundry supply forecast is provided by company type, i.e. dedicated and IDM foundry supply. Foundry supply is also broken down by process technology.

In addition, on January 24th, 2006, Semico is holding another enlightening IMPACT Conference. At the Semico Manufacturing IMPACT conference, Semico and ISMI, the event Platinum Sponsor, will release their co-authored research report analyzing semiconductor technologies and how different scenarios will affect the semiconductor manufacturing outlook in the coming years.

When will 90nm become the sweet spot of semiconductor production? Semiconductor manufacturers need capacity that is accessible, cost effective and consistent. Semico’s January 2006 IMPACT event will bring together industry experts from SEMATECH ISMI, Altera, Chartered, IBM, Philips, TSMC, and others to address these questions and more. One day soon, 90nm will become the sweet spot. What’s next? Will you be ready?

The foundry supply and demand study is available for immediate delivery for $3,500. To purchase, please contact Jim Feldhan at 602-997-0337 or jimf@semico.com, and reference MA102-05, Foundry Supply & Demand: Dynamic Markets Impose Hard-hitting Strategies.

The co-authored research report is available to pre-order at a reduced rate of $3500. After January 24, 2005 this report will list for $5,000. Please contact Jim Feldhan at 602-997-0337 or jimf@semico.com.

Registration for Semico’s Manufacturing IMPACT Conference is open!

Go to: http://www.semico.com/eventimpact/impact.asp for additional information.

If you’re interested in getting a free pass to this event, call Jim Feldhan at 602-997-0337 or send him an email at jimf@semico.com.

About Upcoming Semico Event

The foundries continue to improve on technology, service and breadth of offerings. Can they continue to serve the new markets of the future? What are the critical issues facing the foundries? These questions and more will be answered by leaders in the semiconductor manufacturing space at this event. Plus, Semico and ISMI will release their co-authored research report analyzing semiconductor technologies and how different scenarios will affect the semiconductor manufacturing outlook in the coming years!

When: Tuesday, January 24, 2005
Where: Wyndham Hotel in San Jose, CA
For more info & to register: http://www.semico.com/eventimpact/impact.asp

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