Taiwan is projected to account for the largest percentage of global chip equipment spending in 2007, according to a report released Tuesday.
The study by the U.S.-Taiwan Business Council notes that 2006 was an exceptionally strong growth year for Taiwan’s leading foundry and DRAM chipmakers. With expanded production capabilities in 12-inch wafer manufacturing facilities (knows as fabs) and the establishment of new partnerships, Taiwan has set itself up for a record year in 2007. The council also expects Taiwan to become the world’s largest producer of DRAM.
The council estimates that Taiwan DRAM makers will purchase $6.9 billion in chip equipment in 2007.
According to industry researcher Strategic Marketing Associates, the global chip industry will spend $60 billion on new chip equipment in 2007, and start production in approximately 29 new chip fabs, and as many as 9 more DRAM fabs. Taiwan would account for at least 18.8 percent of global chip equipment purchases in 2007, surpassing the 2006 leader, Japan.
The announcement in January of a $13.9 billion joint venture between Powerchip and Elpida Memory of Japan for the construction of four 12-inch DRAM fabs over the next five years in Taiwan further cements Taiwan’s lead in 2007 chip equipment spending, and will help ensure that Taiwan maintains the largest concentration of 12-inch DRAM fabrication facilities in the world.