Intel Corp (INTC)

[SemiconEng]

Excess 200-mm capacity could threaten next upturn

http://tinyurl.com/5nger
SAN JOSE, Calif. — The IC industry faces a glut of 200-mm fab capacity, which could threaten the dynamics of the next semiconductor upturn, according to an analyst.

"Based on historic trends as well as our checks with industry contacts, 200-mm capacity is not likely to be taken off line with any degree of rapidity despite the rapid migration to 300-mm manufacturing," said Cristina Osmena, an analyst with investment banking firm Jefferies & Co. Inc. (New York).

"While this may benefit chipmakers able to establish volume 300-mm manufacturing capability ahead of their competition, for the industry as a whole, this will lead to excess 200-mm capacity," Osmena said in a report. "Epidemic overcapacity in 200-mm may threaten the robustness of the next upturn."