Oversupply of advanced processes has resulted in 12-inch wafer equipment spilling onto the second-hand market at the surprise of industry players.
Sources at equipment makers indicated that a batch of 12-inch equipment originally from the Southern Taiwan Science Park (STSP) has recently been put up for sale. The seller decided to sell the equipment after finding it was left idle after annual maintenance, the sources said.
While being surprised by the the availability of 12-inch wafer fabrication equipment, industry players recalled the conservative expansion on advanced processes at leading foundries. They noted in saying that leading players are trimming their orders for 12-inch wafer equipment under the prediction that a possible oversupply may weigh on pricing.
The sources added in saying that United Microelectronics Corporation (UMC) has not yet installed equipment at its fab 12B, whereas rival Taiwan Semiconductor Manufacturing Company's (TSMC's) latest focus has been at Fab 6 and Fab 8, rather than 12-inch fabs.
In the second-hand equipment market, about 70-80% of available equipment is specialized for 8-inch wafer production. Second-hand equipment plays a critical role for makers who wish to enhance their capacity at lower cost, as second-hand 8-inch equipment usually cost about 30-40% less than brand new equipment, the industry players commented.
Article translated by Esther Lam
