Wafer prices fall 6% in Q1, FSA says

Wafer prices fall 6% in Q1, FSA says
By Semiconductor Business News
March 31, 2003 (4:42 p.m. EST)
URL: http://www.eetimes.com/story/OEG20030331S0070

SAN JOSE - The average selling price (ASP) for a wafer fell six percent in the first quarter of 2003, as compared to the fourth quarter of 2002, according to a survey from the Fabless Semiconductor Association (FSA) today (March 31, 2003).

The survey gauged the average price paid per wafer by 134 fabless companies and integrated device manufacturers (IDMs), according to the FSA.

“With lackluster wafer demand and low foundry utilization rates in Q4 2002, wafer pricing has fallen over the past several months,” said Jodi Shelton, co-founder and executive director of the FSA, in a statement.

“This is not surprising, given that the foundry sector is being flooded with new players, causing competitive pricing to become a key factor in customer retention strategies. We expect to see continued pricing pressure in 2003,” she said.

Results also indicate that fabless companies put a greater emphasis on designing for advanced geometries than IDMs. More than 26 percent of fables wafer orders included 0.18-micron process geometry, compared to 16 percent of all IDM orders placed.

In contrast, the majority of IDM participants ordered 0.35-micron process geometry, according to the FSA.

Overall, the survey results suggest fabless companies and IDMs paid the same average prices for wafers; however, IDMs typically ordered a higher quantity of wafers per order than fabless companies.