Silicon wafer revenue up 22.5% in 2007, Gartner says

In contrast to 300-mm wafer demand, the 200-mm segment showed clear signs of deceleration during and after Q2 2007. Shipments fell to 5.4 million wafers per month in Q4, Gartner reported.

By Ann Steffora Mutschler, Senior Editor -- Electronic News, 6/11/2008

Thanks to a continued rise in demand for 300-mm wafers, worldwide silicon wafer revenue totaled $12.5 billion in 2007, 22.5% higher than 2006 revenue of $10.2 billion, according to Gartner Inc. 

Market researchers at the Stamford, Conn-based company reported today that the demand increase, partly caused by a shortage of polysilicon, commanded a price premium.

“In contrast to 300-mm wafer demand, the 200-mm segment — in which shipments reached a high in 2006 — showed clear signs of deceleration during and after the second quarter. Shipments fell to 5.4 million wafers per month in Q4,” Takashi Ogawa, research VP for Gartner’s semiconductor manufacturing research group, said in a statement.

In terms of vendor rankings, Shin-Etsu Handotai was the number 1 vendor in worldwide silicon and epitaxial wafer in 2007, with revenue that grew 23.8% to $4.1 billion. The company continued to experience growth in sales of its flagship product, a 300-mm wafer, and a high percentage of premium-priced sales greatly contributed to the high growth, Gartner said.

Sumco, in second place, accounted for 21.7% of worldwide silicon and epitaxial wafer manufacturing revenue, and plans to increase the overall 300-mm wafer capacity of the Sumco group, which includes Sumco Techxiv, to 1,660,000 wafers per month by the end of March 2010, Gartner’s data showed.

In third place, Siltronic’s market share reached 14.8%, boosted by sales in South Korea and Taiwan, the market research company said. Siltronic also plans to expand its 300-mm wafer business.

By geographic region, Asia/Pacific experienced revenue growth of 40.3% in 2007 with China and South Korea recording revenue growth of 44.3 and 52.3%, respectively. The market in Taiwan also grew strongly -- by 29.7% -- while the rest of Asia/Pacific registered an increase of 30.7%. Other regions such as the Americas, Japan, and Europe recorded modest performances with revenue growth rates of approximately 10% each.

“Growth in demand for 300-mm wafers will lessen as the market for these products matures, and prices weaken accordingly. Whereas, the production capacity of manufacturers has governed the direction of the 300-mm market, demand will become a stronger influence on its dynamics. As a result, wafer vendors will need to tailor their prices to suit individual device segments,” Ogawa concluded.