Stow, OH – The wafer fab industry's monthly capacity is set to reach a new high next year, increasing 17%, according to analysis firm Strategic Marketing Associates (SMA).
 
Collectively, the 35 new fabs coming online in 2007 will have the capacity to produce up to the equivalent of 2 million 200-mm wafers.  The value of these fabs may reach $56 billion over the next three years.
 
The expected 17% increase brings with it growth opportunities, as well as the risk of overcapacity, especially in the memory arena, SMA warned.
 
Up to 60% of the added capacity is expected to be allocated for memory, specifically DRAM and non-volatile flash, which has become ubiquitous in consumer electronics.
 
FlashPartners, the Toshiba-SanDisk joint venture, may eclipse fab capacity leader Samsung in flash memory, with ambitious plans to bring three 300-mm fabs online by 2008.
 
Chip foundries are also setting a new record in fab construction, with Taiwan-based TSMC, as well as China-based SMIC and Hua Hong Electronics, planning to bring new 300-mm capacity online next year.
 
The firm projected equipment sales to near an all-time high. Total capital spending by chip companies is set to grow 14% this year to $47.3 billion, and by 10% next year to $59 billion, just shy of the all-time high of $61.5 billion set in 2000.