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Monday, October 23, 2006

Wafer Production Also Likely to Build Glut

By William Trent, CFA of Stock Market Beat

We have long written about excess semiconductor manufacturing capacity. We also noted, however, that one segment of the market - the production of actual wafers - remained tight due to competing demand from both semiconductor and solar cell makers. However, as is often the case when profits are near - more capacity is being build and indicates an increasing likelihood that the sunny outlook will cloud somewhat.SAS expands silicon wafer capacity

Sino-American Silicon Products (SAS) has completed the second phase expansion for its silicon wafer capacity ahead of schedule, and the fresh capacity should start contributing to the company’s revenues starting this quarter, according to a Chinese-language Central News Agency (CNA) report.

SAS currently houses 38 furnaces for silicon wafer production, up from 26. The number of silicon wafer slicing equipment units was also expanded from 10 to 14, the report detailed.

The author may hold a position in the securities discussed. A current list of the author's holdings is available here.

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