Foundry to drive semiconductor market growth in 2013, says Applied CEO

Josephine Lien, Taipei; Jessie Shen, DIGITIMES [Friday 21 September 2012]

The pure-play semiconductor foundry business will continue to boom in 2013 thanks to rising demand coming from the smartphone, ultrabook and other mobile device sectors, according to Applied Materials chairman and CEO Mike Splinter. The segment will remain a key factor driving the overall semiconductor market growth in 2013.

Taiwan Semiconductor Manufacturing Company (TSMC), Globalfoundries and Samsung Electronics are among Applied's major clients.

The foundry segment will represent the mainstream semiconductor market over the next several years, said Splinter, adding that the long-term development of the global foundry industry is promising.

Applied previously revised downward its business outlook for the fiscal year ending October 28, citing "weaker-than-expected near-term demand in its semiconductor equipment business, primarily among foundry customers."

In other news, in response to the transition to 18-inch wafer production, Splinter said that it is still too early to judge how such developments will affect the industry supply chain. Of course Applied will support its customers which are gearing up to make 18-inch wafers to improve efficiency, Splinter noted.

Fellow equipment company ASML has initiated a customer co-investment program to accelerate the development and industrialization of key next-generation semiconductor manufacturing technologies which include extreme ultraviolet (EUV) lithography and 450mm tools. The program also allows the participants to hold a stake in ASML. Intel, TSMC and Samsung have all committed to the program.

Applied CEO sees foundry a key factor driving global IC market growth
Photo: Shihmin Fu, Digitimes, September 2012