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SEMI Silicon Manufacturers Group Reports Second Quarter 2004 Silicon Wafer Area Shipments

Posted on: Monday, 23 August 2004, 06:00 CDT

SAN JOSE, Calif., Aug. 23 /PRNewswire/ -- Worldwide silicon wafer area shipments increased 6 percent sequentially in the second quarter 2004 and 27 percent from the second quarter 2003 according to the SEMI Silicon Manufacturers Group (SMG) in its quarterly analysis of the silicon wafer industry. Total silicon wafer area shipments were 1,619 million square inches during the most recent quarter, up from 1,529 million square inches in shipments reported during the previous quarter (retroactively corrected from the reported first quarter 2004 volumes of 1,514 million square inches).

Silicon revenues also experienced double-digit growth from first quarter 2004 and second quarter 2003 (up 11% and 24%, respectively) as a result of increased prices, greater 300mm sales and overall demand.

"The silicon industry is experiencing robust growth, as capacity utilization tightens. The industry's utilization has increased significantly over the past year, exceeding 95 percent in the second quarter. Prices are improving, and 300mm is a contributing factor in the product mix," said John Kaufmann, vice president of Marketing for MEMC Electronic Materials, Inc. and chairman SEMI SMG. "The silicon industry must continue to adhere to a healthy business model in order to reap the benefits of solid financial returns for future investments. Currently, capital expenditures for the industry are running below 20 percent, as the industry balances incremental capacity increases with growing demand. Productivity is stronger on a revenue per employee basis, as the industry produces greater volumes with a negligible increase in headcount by optimizing efficiency gains."

Quarterly Silicon Area Shipment Trends

Silicon Shipments -- Millions of Square Inches

Million of Square Inches

Q2 2003 Q1 2004 Q2 2004

Polished 944 1,130 1,198

Epitaxial 270 336 360

Nonpolished 59 63 61

TOTAL 1,273 1,529 1,619

Silicon wafers are the fundamental building material for semiconductors, which in turn, are vital components of virtually all electronics goods, including computers, telecommunications products, and consumer electronics. The highly engineered thin round disks are produced in various diameters (from one inch to 12 inches) and serve as the substrate material on which most semiconductor devices or "chips" are fabricated.

All data cited in this release is inclusive of polished silicon wafers, including virgin test wafers, epitaxial silicon wafers, and non-polished silicon wafers shipped by the wafer manufacturers to the end-users.

The Silicon Manufacturers Group acts as an independent special interest group within the SEMI structure and is open to all SEMI members involved in manufacturing polycrystalline silicon, monocrystalline silicon or silicon wafers (e.g., as cut, polished, epi, etc.) not including reclaimed wafers. The purpose of the group is to facilitate collective efforts on issues related to the silicon industry including the acquisition of market information and statistics about the silicon industry and the semiconductor market.

SEMI is a global industry association serving companies that develop and provide manufacturing technology and materials to the global semiconductor, flat panel display, MEMS and related microelectronics industries. SEMI maintains offices in Austin, Beijing, Brussels, Hsinchu, Moscow, San Jose (Calif.), Seoul, Shanghai, Singapore, Tokyo and Washington, D.C. For more information, visit http://www.semi.org/.

SEMI

CONTACT: Jonathan Davis, +1-408-943-6937 or jdavis@semi.org, or DanTracy, +1-408-943-7987 or dtracy@semi.org, both of SEMI

Web site: http://www.semi.org/

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