Silicon wafer capacity sold out for 2006

SEMI ANALYSTS Future Horizons said that factory capacity in the semiconductor market is sold out and the undercapacity is set to continue.

In its February monthly update, the firm said: "Wherever you look at the back end, front end, silicon substrates, or material, factory capacity everywhere is working at high levels of loading and the supply chain is struggling to keep up with demand." That, said Future Horizons, is at the start of the slow first quarter and additional capacity is being added slower than demand.

Malcolm Penn, principal analyst at the firm said the problem wasn't whether there was a capacity shortage on the horizon, but "how long the inevitable semiconductor capacity shortage lasts".

This graph, courtesy of Future Horizons, shows the relationship between front end wafer fab equipment billings and new capacity growth. µ

L'INQ
Future Horizons