At the intersection of technology, finance and the Pacific Rim.

Wednesday, May 17, 2006

Some additional news that we will discuss tomorrow. First, SMIC, China's largest semiconductor company announced that it received $3BN in funding from the City of Wuhan for building a new fab facility.

Second, the Semiconductor Industry grew 7.3% in Q1.

Complements of Kevin....


Blogger LeftBack said...

Following on the heels of your last lecture, I couldn’t help but notice how much stress the semiconductor industry puts on “capacity utilization”. We see this in the SMIC article:

“SMIC said it used 95 percent of its factory capacity in the first quarter, compared with 85 percent a year earlier, and 93 percent in the previous quarter. Factory use in the current quarter is likely to be between 93 percent and 95 percent. “

And in the Computing article:

“End-user demand, capacity utilisation and inventories are the most critical factors affecting industry growth,” Scalise [the SIA President] said. “End-market demand remains generally strong, and capacity utilisation continues to be more than 90 per cent. We will watch the inventory situation closely, especially in market segments for consumer products.”

I haven’t noticed the same level of concern for capacity utilization in other industries.


3:01 PM  
Anonymous Shim, Ji Young said...

I know that China is going to be one of the big semi manufacturing sites pretty much soon.
But, at the end of the day, I think it will be India that will champion in this field at the end of the day.
They have the designing capabilities and the fabs that requres low labor cost to some extent will be built.
As those 2 important value chain will be executed in the same country, it will have strong competitiveness over other Asian counties.
Someday, Samsung might have their fabs and design center in India.

1:00 PM  

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