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TrendForce Says Latest Fab Plans in China Will Need Government Subsidies to Minimize Risks of Losses in Short/Medium Term

2 August 2017

TrendForce’s latest research on semiconductor fab plans in China after 2016 finds that a total 17 new fabs are slated for construction so far. Five of these plants will be for processing 8-inch wafers and the remaining 12 plants will be for processing 12-inch wafers. New fab projects will carry high depreciation costs, and the aggressive recruitment efforts by semiconductor manufacturers will raise the cost of personnel needed for fab operation. Furthermore, prices of bulk silicon wafers have gone up as the strong demand for them worldwide has outpaced the overall supply. Within the short/medium term, the construction and operation of these new fabs poses enormous financial risks for their owners.


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