| Equipment to produce chips posts sales surge |
| Last Updated(Beijing Time):2006-12-13 16:57 |
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Sales of equipment used to make semiconductors are expected to jump 80 percent this year on the Chinese mainland, triple the international growth rate, the global trade organization SEMI forecast yesterday.
Mainland revenue will grow only one percent in 2007, however, because investors are facing capital shortages and protectionism after this year's rapid growth, industry insiders said.
China's semiconductor manufacturing equipment sales are expected to reach US$2.39 billion in 2006 and US$2.42 billion in 2007, SEMI said in a statement.
"This year's surging demand comes from expansion by chip makers that started in 2004," said Li Ke, a semiconductor analyst at Beijing-based CCID Consulting Co, a research firm under the Ministry of Information Industry.
Wafer plant construction takes 18 months, according to Li.
This year alone, industry giants such as Hynix Semiconductor, STMicroelectronics and Semiconductor Manufacturing International Corp invested in new 12-inch wafer plants - the most advanced technology - on the Chinese mainland.
Others, such as Huahong Group, have had to scale back their ambitions.
Huahong lacks half the capital to complete plans to build a 12-inch wafer plant in Shanghai, which could cost US$1 billion, according to Li.
"The high-tech investment ban in Taiwan and the United States is also a concern," the analyst said.
Taiwan firms are not allowed to build 12-inch wafer plants on the mainland. The island government has rejected cross-strait expansion plans, such as a bid by Powerchip, which applied to invest US$1 billion on the mainland two years ago.
The picture is expected to brighten after next year, SEMI said.
China's semiconductor manufacturing equipment sales are expected to grow 22.8 percent in 2008 and 8.7 percent in 2009, according to SEMI.
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