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Sumco Techxiv Corp., a subsidiary of Sumco Corporation, the silicon wafer manufacturer, has announced via the Japan Times that it will suspend wafer production at its Omura factory. The suspension, which is planned for two weeks from December 25th, comes after the company approximately halved its 400-strong workforce since late October this year.

The silicon wafer manufacturer is feeling the pinch, according to the Japan Times, due to the dip in demand for semiconductor chips, and has been operating at half its production capacity following the slowdown in consumer demand. The factory was also closed between November 4th and 6th, and in its production peak churned out approximately 150,000 300mm silicon wafers a month.

Recently, MEMC noted a drop in semiconductor wafer demand between 20 and 30%, however, the U.S based wafer producer said it would shift production to meet demand in the solar market in an attempt to fill the semiconductor demand shortfall.

After several years of tight wafer supply, the major producers have spent several years building new capacity which is only now starting to come on stream, just as the semiconductor and solar industries struggle with a fall in demand.