SCOTTSDALE, AZ – The final two quarters of 2009 are forecast to bring a sharp uptick in wafer fab capacity utilization, reaching levels not seen since the third quarter of last year, says IC Insights.
 
While the IC capacity utilization rate stayed around 90% in 2007 and through the first three quarters of 2008, the economy dropped in the fourth quarter, dragging utilization rates down to 68%, says the firm.
 
IC Insights noted IC capacity utilization reached a low of 57% in the first quarter, rebounding 21 points to 78% in the following quarter, as OEMs began replenishing inventory. The firm expects industry capacity utilization to increase another 10 points to 88% in the third quarter.
 
"Though not sinking to the all-time annual low rate of 71.2% in 2001, IC Insights expects the average IC industry capacity rate for the entire global recession year of 2009 to drop to 77.4%," Bill McClean, president of IC Insights, said.
 
"Strengthening IC capacity utilization rates due to the tremendous capital spending cutbacks in 2008 and 2009 will cause IC ASPs to rebound, with annual increases of 5% forecast between 2010 and 2012," he concluded.
 
IC Insights’ report follows a SEMI forecast of 64% year-over-year growth in fab spending in 2010. According to SEMI, the overall utilization rate is expected to lag at 70% to 80% by the end of 2009.

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