2008 China Semiconductor Wafer Fab and Foundry Outlook

SUMMARY

China remains one of the most active regions of the semiconductor industry worldwide for new fabs and foundries. SEMI now offers a comprehensive update to its original China Semiconductor Wafer Fab and Foundry Outlook report first published last year.

This new report contains a new report structure and new content not previously covered: including eight more fab projects that are under investigation; separate chapters on technology development trends and local supply of materials, equipment, and components; and section covering the used fab equipment market in China.

Use this report to obtain status of leading fab projects and established chip manufacturers in China including technology development and capacity trends; understand the current environment related to fab investment strategies; plan business opportunities around the outlook for fab equipment and materials spending; and conduct benchmark/competitive analysis.

Methodology and Scope

In-depth personal, telephone and email interviews were conducted with semiconductor manufacturers, equipment and material vendors, banks and fab construction companies, as well as with government officials and professionals from the industry associations in China.

A total of 87 companies, investment entities, industry associations and industry parks were contacted. The semiconductor manufacturers interviewed in this report represent more than 95% of the total output of China's semiconductor manufacturing industry.

Contents and Features

The report provides profile information on chip manufacturers, equipment subsystems, components and parts manufacturers in China including:

• Fab Investment Structure and Trend
• Capacity Development and Trend
• Trend of Capacity Transferring from Overseas to China
• Fab Equipment and Material Market Outlook
• Used Fab Process Equipment Market and Forecast
• Local Sourcing of Fab Equipment and Materials
• Technology Roadmaps of Leading Fabs in China
• R&D Spending Trends by the Leading Fabs in China
• Updated Fab and Foundry Profiles
• Maps of Key Semiconductor Manufacturing Regions and Supply Chains in China.

TABLE OF CONTENTS

EXECUTIVE SUMMARY

1 INTRODUCTION

• 1.1 Methodology
• 1.2 Assumptions

2 CHINA SEMICONDUCTOR FAB CAPEX AND CAPACITY OUTLOOK

• 2.1 Overview
• 2.2 Fab Investment Structure and Trend
• 2.3 Capital Spending Outlook
• 2.4 Capacity Development and Trend
• 2.5 Trend of Capacity Transferring from Overseas to China

3 FAB PROCESS EQUIPMENT AND MATERIAL SUPPLY

• 3.1 Overview
• 3.2 Fab Equipment and Material Market Outlook
• 3.3 China Used Fab Process Equipment Market and Forecast
• 3.4 Local Sourcing of Fab Equipment and Materials

4 TECHNOLOGY TREND OF SEMICONDUCTOR FAB IN CHINA

• 4.1 Overview
• 4.2 Technology Roadmaps of Leading Fabs in China
• 4.3 R&D Spending Trends by the Leading Fabs in China

5 SUMMARY AND CONCLUSIONS

• 5.1 Summary
• 5.2 Conclusions
• 5.1 Acknowledgements

6 APPENDICES

• A List of Acronyms and Abbreviations
• B Excel Workbook
• C Milestone of China's Semiconductor Wafer Manufacturing History
• D Profile of Top-Tier Established Semiconductor Manufacturers in China Equipment Market in China
• E Additional Information of Used Fab Equipment Market in China

List of Figures and Tables

List of Figures

• Figure 2.1 China IC Market Demand vs. Domestic IC Supply in 2000-2010
• Figure 2.2 China Fab/Foundry Sales in 2000-2010
• Figure 2.3 Investment to China's Fab in 2000-2007
• Figure 2.4 Fab Investment Structure (2000-2006)
• Figure 2.5 Fab Capital Spending Breaking down (2001-2010)
• Figure 2.6 Fab Capacity by Fab Categories (K wpm in 200 mm wafer equivalent, 2001-2010)
• Figure 2.7 Capacity Share by the Top 10 Manufacturers (K wpm in 200 mm wafer equivalent)
• Figure 2.8 Capacity by Wafer Size (K wpm in 200 mm wafer equivalent)
• Figure 2.9 200 mm-300 mm Wafer Capacity Transferring to China (K wpm in 200 mm wafer equivalent)
• Figure 2.10 150 mm Wafer Capacity Transferring to China (K wpm)
• Figure 3.1 Worldwide Semiconductor Wafer Processing Equipment Market (US$ Billion)
• Figure 3.2 Worldwide Fab Material Outlook by Region ($ Billion)
• Figure 3.3 Wafer Processing Equipment Spending in China ($ Million)
• Figure 3.4 Estimated Silicon Wafer Sales in China
• Figure 3.5 Estimated Market Size of Used Wafer Processing Equipment in China (in US$ millions)
• Figure 3.6 Geographic Distributions of Local Fab Material Suppliers in China
• Figure 4.1 Process Technology Progress by Semiconductor Manufacturers in China
• Figure 4.2 Number of IC Related Patent applications in China (1985-2006)
• Figure 4.3 Fab Capacity by Feature Size in China (2001-2010)
• Figure 4.4 Fab Technology Roadmap in China (2006-2010)
• Figure 4.5 SMIC's R&D Spending vs. Sales Revenue (2003-2007)
• Figure 4.6 Leading Local Fab's R&D Spending vs. Sales Revenue (2003-2010)

List of Tables

• Table 1.1 Companies Interviewed
• Table 1.2 Semiconductor Manufacturers under Investigation
• Table 1.3 Currency Exchange Rates
• Table 2.1 Example of China's Electronic Product Output in 2006
• Table 2.2 Green Startup Fab Projects in China
• Table 2.3 Estimated Total Capital Expenditures in China
• Table 2.4 Company Categorization by Wafer Size
• Table 2.5 Estimated Fab Capacity in China 11 (K wpm in 200 mm wafer equivalent)
• Table 3.1 New Equipment Billings Trends in China in 2006 and 2007
• Table 3.2 Fab Materials Market in China by Segment (in US$ millions)
• Table 3.3 2007 Market Breakdown and Trends for Used Equipment by End User Category
• Table 3.4 2007 Market Breakdown and Trends for Used Equipment by Wafer Size and Market Trend
• Table 3.5 Domestic Equipment Suppliers and Products
• Table 3.6 Major Local Semiconductor Wafer Manufacturers in China
• Table 4.1 2006 Top 25 Patent Granted by Country of Origin from US Patent and Trademark Office
• Table 4.2 SMIC Fourth Quarter Revenue Share by Technology, 2002-2006
• Table 4.3 Leading Fabs R&D Spending Trends (2003-2007)