Wafer demand outpaces semiconductor unit growth in 2011

PHOENIX, USA: Semiconductor unit sales remain strong and are expected to reach 718 billion in 2011, an 8.6 percent growth over 2010. Unit sales are driving wafer demand at both advanced and mature fabs. Total silicon demand is expected to grow by 10 percent in 2011.

In the first quarter of 2011, semiconductor unit sales increased 1.3 percent over Q4 2010, reflecting an unusually healthy growth compared to the traditionally slow or negative seasonal pattern for the first quarter of the year. When compared to the same quarter a year ago, unit sales grew 6 percent. The second quarter is expected to register a 6 percent growth, quarter over quarter, with a corresponding growth in wafer demand.

Semiconductor devices that are leading the growth trend in both units and wafers include DRAM, NAND and MCU. Smartphone and tablet sales continue to drive NAND flash demand. The main driver for DRAM demand is still the computing market including notebooks and servers.

Semico is cautious about the second half of 2011 due to the decline in the Semico IPI which started last year; however, the index has already logged in two months of increase, providing some indication that the slowdown will be brief.Source: Semico Research, USA.