SARATOGA, CA – State of the art wafer fabrication capacity reached a record high of 99% in the fourth quarter of 2005, prompting speculation over a potential recession.
According to research firm Advanced Forecasting Inc., the fourth-quarter utilization level is “reminiscent” of cycles in 1995 and 2000 in which utilization rates of the SoA technology (defined as line widths smaller than 0.12 microns) topped 97%, only to be followed by a recession.
This time it’s different, the semiconductor forecasting house says.