200mm wafer production is expected to grow

3 April, 2016

Growing demand for analog products ensures the future of 200mm wafers. Semiconductor production volume will grow, but profitability will decline

Growing demand for analog products ensures the future of 200mm wafers. Semiconductor production volume will grow, but profitability will decline

New technologies high costs dampen profitability
Adaptation of new technology lowers yields

The volume of semiconductor production is expected to grow in 2016, but the industries profitability is expected to decline due to lower prices, global economic slowdown as well as lower yield of introducing new technologies. According to Semico, an Arizona based research firm specializing in Semiconductor’s market, wafer demand has grown by 4.8% in 2015.

Demand for 300mm wafers grew 6.8% in 2015. Nevertheless, even though the trend to move from 200mm wafers to 300mm wafers continue, the research finds that demand for 200mm wafers has grown by 4.4% in 2015 and is expected to continue in 2016. Demand for 300mm wafers is expected to grow by 8% in 2016, while demand for 200 mm is expected to grow by 5%.

Hard time with FinFET

One major driver for decline in revenues during 2015 was the difficult adoption of the new 14nm/16nm FinFET transistors. “However, productivity and yields are going to improve throughout 2016” said Joanne Itow, Managing Director Manufacturing for Semico.

New markets, such as IoT, Wearables and the Home Automation will boost sensor demand by 8%. The demand for analog products such as RF components and power adapters is expected to grow on a faster rate of 10% in 2016. The high growth rate is attributed to developments in the automotive industry, in agriculture and industrial applications.

In terms of production volume, the industry expands
In terms of production volume, the industry expands

200mm are here to stay

In the last few years, the trend in the semiconductor industry is to move from 200mm wafers to 300 mm wafers. Chip producers such as Samsung, Toshiba and Micron use almost exclusively 300mm wafers. Toshiba has actually announced that it will only use 300mm wafers, and the trends is still going on. According to IC Insights by 2017, 70% of semiconductor production will be in 300mm wafers. 300mm wafers are used mainly for Semiconductors such as DRAM, Flash memory and micro-processors.

But for some components, 300mm are not viable in terms of cost-efficiency. In certain types of memory, picture sensors, analog components and MEMS based devices, the use of 200mm wafers is a perfect match. The continued use of 200mm in these segments will keep the demand for these alive for years to come.

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Posted in: Featured Stories , News , Semiconductors

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