During a meeting with Taiwan media on July 29, Applied Materials president and CEO Michael R Splinter said that many positive signs point to a recovery in the semiconductor industry, yet customers remain cautious about capital spending due to the long-term slowdown.
Splinter said that utilization rates for advanced processes in customers’ factories are high, reaching levels in which aggressive capacity expansion would have begun in the past. But the severity and length of the downturn is forcing customers to be conservative when adding capacity.
Disagreeing with Morris Chang’s recently voiced opinion that the rate at which chipmakers are investing in 0.13-micron and 90nm processes may slow down, Splinter highlighted that four vectors are driving the market – performance, features, low-power and cost – and new developments in each of these are already available. Although he expressed concern about mask costs, he was optimistic that if yields at 12-inch fabs can be improved to match the level of 8-inch fabs, not only will 0.13-micron and 90nm become the leading process technologies, but production costs for customers will be halved – something that happens about once every 10 years in the industry cycle.
Applied Materials has a lot hanging on the move to new technologies and Splinter aims to strengthen the company’s leadership in the semiconductor equipment industry with the launch of six new systems supporting 90nm and 65nm processes, including the ComPLUS and Producer Etch systems. Applied Materials is also actively developing TFT manufacturing systems.
Note: With assistance from Pearl Tan, Applied Materials Taiwan.
Michael R. Splinter, president and CEO, Applied Materials
Background links:
Applied Materials extends technology leadership beyond 90nm (Jul 14 press release)
Electronic News – From Intel to AMAT: Michael Splinter’s first 75 days at Applied Materials (Jul 23)
Article translated by Stephen Taylor and edited by Stephen Taylor
