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A significant proportion of Intel Corporation’s 2009 capital expenditure plans will be targeted at re-tooling 300mm fabs in Arizona, New Mexico and Oregon to its 32nm process technology, which is expected to ramp in the second half of the year. As the IC giant, migrates its full range of microprocessors to the latest technology node in 2010, Intel expects to spend approximately US$7 billion on the transition over the next two years. Read more >>

Qimonda AG has been forced to reduce production at its last remaining DRAM production facility to preserve cash and demonstrate to potential investors that its 46nm ‘Buried Wordline’ technology is competitive with rivals such as Samsung and Hynix. With the closure of its 300mm fab in Richmond, Virginia, the Dresden facility is Qimonda’s single remaining production facility. Read more >>

UMC followed the other major pure-play foundries in reporting a significant decline in revenue and fab utilization rates for the 4Q08 as the economic recession impacted orders from semiconductor customers. Although UMC claimed to have reduced fab utilization breakeven to 60% in Q4, losses mounted to US$717 million as utilization rates hit only 48%. UMC had previously guided utilization rates would decline to approximately 55% for the fourth quarter. This is the second sequential quarter that UMC has posted losses.

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It was hoped that the potential demise of Qimonda AG, the consolidation of a number of Taiwanese producers, and more rational behaviour from the major two producers in Korea would all see a recovery in the DRAM market in 2009. However, this may not be the case if the latest forecast from iSuppli Corp proves to be correct. Read more >>

Numonyx B.V. has said that it expects volume production of its 45nm multi-level cell (MLC) NOR flash memory to begin in 2010, using Self-Aligned-Contact (SAC) process architecture to obtain the necessary feature sizes but with improved reliability of the flash cells at a lower production costs. Intel Corp. noted last week that an SAC-based 45nm NOR flash process was designed to reduce cost per bit by 50% while delivering higher program performance. Numonyx said that the forthcoming devices increased the speed in which data is written by up to 50%, compared to its 65nm offerings. Read more >>

International Rectifier Corporation has said that the current business conditions warrant a global workforce reduction of 18% and the closure of two fabrication facilities to reduce operating cost. IR expects 850 jobs will go before the end of 2009. Read more >>

Semiconductor Manufacturing International Corporation (SMIC) has reported capital spending below previous guidance for 2008 as well as slashing spending for 2009. Capital expenditures for 4Q08 were US$56 million, resulting in 2008 spending reaching US$665 million, lower than the US$790 million previously guided for the year. For 2009, SMIC has planned capital expenditures to be only US$190 million, indicating that it has sufficient capacity to meet expected demand in 2009. Read more >>

Nikon has reported a financial loss for its Precision Equipment business unit in 2008. The business unit includes Nikon’s LCD and semiconductor lithography tools. Nikon noted that it recorded a significant decline in semiconductor tool sales, led by 193nm ArF dry scanners due to the significant reduction in capital spending. Read more >>

The US-Taiwan Business Council has published its "Semiconductor Quarterly Report - Annual Review, 2008," that puts forth the issues facing the Taiwanese DRAM manufacturing industry. As the Taiwan government looks at several available bailout options, it seems the rescue plan is not as easy as just dipping into the US$3 billion cookie jar the government has set aside for the industry. Read more >>

A spokesperson at SEH America Inc told a regional newspaper that it would implement a production plant shutdown at its Vancouver plant for a month, starting this Friday due to the semiconductor industry downturn. SEH is a supplier to Intel Corp and Texas Instruments, both of which have announced production cutbacks to stem rising inventories and rapidly falling demand since the third quarter of 2008. Read more >>