Glimpse into the
Southeast Asian Semiconductor Equipment and Materials Market
contributions from Dan Tracy, Christian Gregor Dieseldorff, and Paul
The Southeast Asia
region has continued to be a vital part of the assembly and test of
semiconductor devices, especially the countries of Singapore, Malaysia,
Indonesia, Thailand, and the Philippines. This region consists of the
largest activity in the area of assembly and test equipment and is
consider the second largest market region for packaging materials. In
addition, new fab investments continue to make significant strides in
While it is estimated
that capital spending will decline by 10% to 15% globally in 2008,
Southeast Asia will likely run counter to this trend. For Southeast
Asia, the semiconductor equipment market is expected to gain several
percent from 2007 to 2008 ($3.05 billion to $3.13 billion). The
assembly and test equipment market represents about 50% of this market,
given the stronhttp://wps2a.semi.org/wps/portal/_pagr/135/_pa.135/704g presence of assembly and test plants in the region.
Source: SEMI« Equipment Market Data Subscription (EMDS), March 2008
Not to be overlooked,
the global semiconductor materials market, which consists of wafer fab
materials and packaging materials, is forecasted to grow 9.3% from $43
billion (2007) to $47 billion (2008). In particular, the Southeast Asia
semiconductor materials market has enjoyed consistent growth in the
last two years and is expected to continue this trend. It is forecasted
that for 2008, the materials market will grow from $6.8 billion to
close to $7.6 billion—an increase of about 12%. The packaging materials
segment within this market is expected to reach $5.0 billion in 2008.
The region continues to outpace Europe in this market and has surpassed
North America in semiconductor materials revenue. This growth is driven
by a consumption of advanced materials such as packaging substrates and
green encapsulant materials.
Source: SEMI« Market Data Subscriptikon (MMDS), January 2008
- Asia consists of the regions of China, Japan,
South Korea, and Taiwan
- Totals may not add due to rounding.
Investments in front-end
production capacity are still growing in Southeast Asia. Already the
location of fabs for IM Flash, Tech Semiconductor, Chartered
Semiconductor, UMC, ST Microelectronics, Infineon and SSMC and others
are emerging in the region. A few of these fabs are highlighted as
IM Flash (a joint
venture between Intel and Micron Technology) in Singapore started a 60K
wpm flash fab in Q2 ‘07 with a total estimated cost of about US$3.0B.
The fab is expected to begin equipping in 2H 2008 and begin first
silicon near the end of 2008 or the beginning of 2009.
joint venture now between Micron, Canon, and Hewlett-Packard—is more
than one third through the transition from 200 mm to 300 mm.
The 300 mm fab is expected to reach about 50,000 wpm by end of
2008. In addition, 68 nm has began to ramp near the beginning
of this year.
Qimonda pushed out
construction start of their 60K fab from the beginning of 2008 until
‘market conditions improve’. However, it is expected the fab
may start construction by end of 2008.
in Germany—designs, develops, and manufacturers a broad range of
semiconductor devices. The company has a worldwide presence including a
front-end fab located in Southeast Asia (in Kulim, Malaysia), which is
the largest non-memory fab in the world. This $1 billion fab began its
production ramp-up in August 2006 and is in a full ramping mode at a
maximum capacity of 100K wpm producing power and logic semiconductor
devices used for automotive and industrial applications.
the largest foundry in Southeast Asia, has plans to expand its wafer
capacity in the upcoming months. The company has put in motion plans to
expand their 300 mm fab (Fab 7) focusing on geometries of 65 nm and 45
nm. Capital expenditurJun ZhuJun Zhues in 2008 are expected to be at $630M (most of
it for 65 nm and some for 45 nm capacities). It is projected that by
the end of 2008, Fab 7 will increase their capacity to 30,000 wpm.
in a surprise move to expand its capacity, has acquired an 8-inch fab
from Hitachi in Singapore at the end of Q1 ‘08 for US$233M. This is a
24K wpm fab capable of 0.18 Ám to 0.15 Ám high voltage and display
Southeast Asia 200 mm / 300 mm Frontend Fabs
(location of fab is an approximation)
Source: SEMI« World Fab Watch, Februrary 2008
Besides the increased
investment, the capacity of the fabs for this region has shown a
year-over-year increase of 13% from 671K (2006) to 760K wpm
(2007). It is estimated that this will increase to 904K wpm
by the end of 2008—an increase of about 19%!
Southeast Asia is a
region to closely monitor. Although its growth will not be as
aggressive as its Greater Asian counterparts, it will continue to make
significant strides into the semiconductor equipment materials market.
The new fab activities in this region will increase the momentum for
greater fab capacity in Southeast Asia. Also, India is just four hours
flying time from Singapore and represents a frontier in high tech
manufacturing. The recently announced national semiconductor policy has
stimulated several fab proposals and even more activity in
Portions of this article
were derived from the SEMI Equipment Market Data Subscription (EMDS),
the Material Market Data Subscription (MMDS), FabFutures, Fab
Capacity Report, and the World Fab Watch. These reports are essential business tools for any
company keeping track of the semiconductor equipment and material
market. Additional information regarding this report and other market
research reports can be found at www.semi.org/marketinfo.