Mainland China next year to increase the level of capital expenditure on chip manufacturing

Investment bank Piper Jaffray & Co. recently published research report, 06 years in Taiwan province capital spending will be 5% higher than in 2005, and China, capital expenditure will increase 50%. The investment bank also raised its forecast for global semiconductor capital spending in 2005 and said it would be flat in 2006.

Piper Jaffray & Co. said that in 2006 Taiwan capital expenditure situation is good or bad. TSMC may adopt a conservative spending strategy to maintain a steady capital expenditure, mainly for 90/65 nano capacity expansion. United capital expenditures will significantly increase by 100%, actively seeking a share of the market of 90 nm. Taiwan DRAM capital expenditure of the overall flat or slightly flat. ProMOS and Inotera will continue to expand its 300mm capacity, while Powerchip and Winbond capital spending slowed in 2006. The investment bank is expected to restore China's Semiconductor Capital expenditures. SMIC's spending plan is expected to rise in 2006, as the company is upgrading its 300 mm wafer capacity to compete for the market of the 90 nanometer. STMicroelectronics (ST) -Hynix in Wuxi, the joint venture will flash in the second half of 2006 to begin the installation of equipment, although the first stage 200mm capacity expansion will be from Hynix Fab 6 second-hand equipment, other capital expenditures from the ship and the possibility of ascension. And all of the ship's 200mm plants are running at full capacity, but it and the power of the "legal issues" delayed its IPO and capacity expansion plan.

There is going to be amazing expansion may be the Shanghai Huahong NEC. In addition, Chinese, found no other corporate capital expenditure will be significantly improved, such as Huarun, China Hongli semiconductor, Shanghai advanced semiconductor and TSMC (China), because most companies either lack of funds, or business needs and the lack of motivation.