Semiconductor Materials Post Record Revenues for Fourth Straight Year


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Semiconductor Materials Post Record Revenues for Fourth Straight Year

SAN JOSE, Calif. – March 31, 2008 – The global semiconductor materials market grew 14 percent in 2007 and is forecasted to grow over 11 percent in 2008 according to the latest materials forecast from SEMI. While the semiconductor industry grew three percent in 2007 to reach the $256 billion published by the Semiconductor Industry Association (SIA), the global semiconductor materials market grew 14 percent in 2007 to reach a record $42 billion.

Growth was seen in both the wafer fabrication materials and packaging sectors with increases of 17 percent or $25 billion and nine percent or $17 billion respectively. Japan continues to dominate worldwide semiconductor materials consumption at 22 percent share due to its large wafer fab and packaging base. Taiwan has held onto the number two spot in terms of consumption of semiconductor materials for the past four years driven by strong growth in wafer foundries and packaging subcontractors. The Rest of World region (ROW), which aggregates Singapore, Malaysia, Philippines, other areas of Southeast Asia and smaller global markets, claims the third largest materials market due to packaging materials. The semiconductor materials market in China is growing at the fastest rate given the new capacity coming on-line from a previously small base.

"As the semiconductor companies continue to ship record amounts of units, demand for materials is increasing as well,” said Dan Tracy, senior director of Industry Research and Statistics at SEMI. "Heightened demand in addition to the tight supply for various gases, silicon, and the widespread adoption of advanced packaging technologies are resulting in very strong revenue growth for semiconductor materials suppliers.”

2006-2007 Semiconductor Materials Market by World Region

(Dollars in U.S. Millions; Percentage Year-over-Year)

Region

2006

2007

% Change

China

2,384

3,266

37.0

Europe

3,394

3,630

6.9

Japan

8,610

9,307

8.1

South Korea

4,891

6,140

25.5

North America

5,131

5,480

6.8

Taiwan

6,746

7,859

16.5

Rest of World

6,192

6,712

8.4

Total Regions

37,349

42,393

13.5

* Totals may not add due to rounding

The Material Market Data Subscription (MMDS) from SEMI provides current revenue data along with two years of historical data and a three-year forecast. A year subscription includes four quarterly updates for the material segments reports revenue for seven market regions (North America, Europe, ROW, Japan, Taiwan, South Korea, and China). The report also features detailed historical data for: silicon shipments and revenues for photoresist, photoresist ancillaries, process gases and leadframes. For more information or to subscribe, please contact SEMI customer service at 1.877.746.7788 (toll free in the U.S.) or 1.408.943.6901 (International Callers).

SEMI is the global industry association serving the manufacturing supply chains for the microelectronic, display and photovoltaic industries. SEMI member companies are the engine of the future, enabling smarter, faster and more economical products that improve our lives. Since 1970, SEMI has been committed to helping members grow more profitably, create new markets and meet common industry challenges. SEMI maintains offices in Austin, Beijing, Brussels, Hsinchu, Moscow, San Jose, Seoul, Shanghai, Singapore, Tokyo, and Washington, D.C. For more information, visit www.semi.org.

ASSOCIATION CONTACTS:
Scott Smith/SEMI
Ph: 408.943.7957
E-mail: ssmith@semi.org

Dan Tracy/SEMI
Ph: 408.943.7987
E-mail: dtracy@semi.org

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