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STAMFORD, Conn., June 11, 2008 View All Press Releases

Gartner Says Worldwide Silicon Wafer Revenue Reached $12.5 Billion in 2007

Worldwide silicon wafer revenue totalled $12.5 billion in 2007, a 22.5 percent increase from 2006 revenue of $10.2 billion, according to Gartner, Inc.

“The increase was due to two factors: a continued rise in demand for 300 mm wafers, which commanded a price premium; and the general benefit of high wafer prices, partly caused by a shortage of polysilicon,” said Takashi Ogawa, research vice president for Gartner’s semiconductor manufacturing research group. “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 the fourth quarter.”

Shin-Etsu Handotai was the No. 1 vendor in worldwide silicon and epitaxial wafer in 2007 (see Table 1), as its revenue grew 23.8 percent to exceed $4 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.

Sumco, in second place, accounted for 21.7 percent of worldwide silicon and epitaxial wafer manufacturing revenue. It 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.

Siltronic rounded out the top 3 rankings with its market share reaching 14.8 percent. The company is also expanding its 300 mm wafer business. Sales in South Korea and Taiwan contributed to the company’s increased market share in 2007.

Table 1
Worldwide Silicon and Epitaxial Wafer Manufacturing Vendor Revenue Estimates for 2007
(Millions of U.S. Dollars)

2007 Rank

2006 Rank

 

Company

2007 Revenue

2007 Market Share (%)

2006 Revenue

2006-2007 Growth (%)

1

1

Shin-Etsu Handotai

4,058

32.5

3,278

23.8

2

2

Sumco

2,708

21.7

2,172

24.7

3

3

Siltronic

1,848

14.8

1,430

29.2

4

4

MEMC Electronic Materials

1,216

9.7

1,175

3.5

5

5

Sumco Techxiv

959

7.7

857

11.9

 

 

Total Market

12,486

100.0

10,194

22.5

Source: Gartner (June 2008)

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

“Growth in demand for 300 mm wafers will lessen as the market for these products matures, and prices weaken accordingly,” Mr. Ogawa said. “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.”

Additional information is available in the Gartner report "Market Share: Silicon Wafers, Worldwide, 2007." This report is available on Gartner's Web site at http://www.gartner.com/DisplayDocument?ref=g_search&id=687112&subref=simplesearch.

This research is produced by Gartner Dataquest's Semiconductor manufacturing research group. This research program, which is part of the overall semiconductor research group, provides a comprehensive view of the entire semiconductor industry, from manufacturing and materials to device and application market trends. More information on Gartner's semiconductor research can be found on Gartner's Web site at http://www.gartner.com/it/products/research/asset_129175_2395.jsp.

 

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