Prices of 8- and 12-inch wafers to rise in 2Q10, says paper

sources: digitimes    3/3/2010 14:36:10

Major blank wafer suppliers including Shin-Etsu Handotai (SEH), Sumitomo Mitsubishi Silicon Corporation (Sumco) and MEMC Electronic Materials have all raised their quotes for the second quarter of 2010 to reflect the ongoing surge in demand, according to a Chinese-language Commercial Times report citing industry sources.

Prices for 8- and 12-inch blank wafers will rise by 8-10% and 15-20%, respectively, in the second quarter, according to the paper. With foundries and DRAM makers set to ramp capacity after equipment move-in in March, their wafer suppliers have seen growing orders for 12-inch wafers, the paper said. Meanwhile, demand for 8-inch wafer is being fueled by the LCD driver IC, RF IC and network chip sectors, the paper noted.

In addition, the paper estimated Taiwan Semiconductor Manufacturing Company (TSMC)'s overall capacity for the second quarter is likely to grow by about 10% compared to the previous quarter's level, with its two 12-inch fabs contributing 190,000 wafers a month. United Microelectronics Corporation (UMC) is also looking to expand 12-inch wafer capacity to total 70,000 wafers in mid-2010 compared to about 60,000 units in the first quarter, the paper said.

In related news, small- to medium-size wafer suppliers Sino-American Silicon Products (SAS) and Wafer Works are also seeing strong demand. SAS has revealed plans to raise its quotes by 3-10% for the second quarter, whereas Wafer Works said it does not rule out the possibility of raising prices.