Second Quarter Silicon Wafer Shipments Decline

SAN JOSE, Calif., Aug. 7 -- Worldwide silicon wafer area shipments declined by 21 percent during the second quarter of 2001 compared with the previous quarter said Semiconductor Equipment and Materials International (SEMI) in its quarterly analysis of the silicon wafer industry.

Silicon wafer area shipments totaled 988 million square inches in the second quarter of 2001, down 21 percent from the 1250 million square inches shipped during the first quarter of 2001 and down 28 percent compared with the second quarter of 2000.

"Silicon demand has nose-dived this year, causing the silicon suppliers to implement cost-cutting in the form of lay-offs or frequent plant shut-downs," said Stanley T. Myers, president and CEO of SEMI. "Virtually all 200 mm investment plans have been put on hold. The market will eventually improve, but the question remains as to how quickly silicon suppliers could respond to a demand increase. Furthermore, the current economic challenges threaten the industry's ability to provide next generation diameter products (300 mm) in quantity and quality as required by the market."