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With fab utilization rates above 90 percent and IC shipments projected to grow by 8 percent in 2008, the 15 percent reduction in capital expenditure (CapEx) is expected to push Average Selling Prices (ASPs) higher over the next five years and result in a sustained period of tight supply, noted IC Insights in its Mid-Year McClean Report Update. Read more >>

Citing reasons including overcapacity, weaker than expected demand for NAND flash and an increase in inventory, SanDisk Corporation said it would be delaying its capacity expansion plans at Fab 4 and cutting capital expenditure by approximately $500 million in fiscal 2008 and in fiscal 2009. Eli Harari, SanDisk’s Chairman and Chief Executive Officer, also said that the company would hold back on investment plans for Fab 5 and return to purchasing up to 20 percent of its NAND flash requirements from outside sources. Read more >>

The June 2008 Book-to-Bill Report from SEMI posted a strong increase to 0.85, compared to that posted in May of only 0.79. This equated to $1.03 billion in orders in June 2008 (three-month average basis) for North America-based equipment suppliers. This is only the second rise in the book-to-bill ratio in 2008. Read more >>

ON Semiconductor Corporation has signed a definitive agreement for the takeover of Catalyst Semiconductor, Inc. The all-stock transaction will see Catalyst shareholders receive 0.706 shares of ON Semiconductor common stock per Catalyst share, which represents an approximate equity value of $115 million and an enterprise value of approximately $85 million. Read more >>

Applied Materials has signed a two-year system support contract with Inotera Memories that covers its two 300mm DRAM fabs, located in Taiwan. Inotera Memories is a joint venture between Qimonda AG and Nanya Technology Corporation. Read more >>

The Fab Owners’ Association (FOA) has added four new members to its ranks, the association announced today. SVTC Technologies, Infineon Technologies, Maxim Integrated Products and ANADIGICS, Inc. have all joined the FOA, which strives to provide a forum for semiconductor manufacturing executives and industry suppliers to discuss common manufacturing hurdles and issues in an attempt to lower manufacturing costs through information sharing. Read more >>

In a revision of its April forecast of a 19.8 percent decline in worldwide capital equipment spending, Gartner, Inc. has forecast a 22.4 percent decrease from spending levels seen in 2007. The market research company have estimated that spending for the year will amount to approximately $49.2 billion and that the decline is a result of oversupply in the DRAM and NAND flash memory segments. Read more >>

Numonyx and Elpida Memories have signed a letter of intent to enter into a foundry agreement that would see Elpida fabricate 65nm NOR flash devices at its 300mm wafer fab in Hiroshima, starting in mid-2009. The agreement is expected to be finalized in the current quarter and also includes 45nm production, though Numonyx did not say whether this would also include its phase-change memory devices at that node, revealed earlier this year by the company. Read more >>

Semiconductor R&D and engineering costs are rising at a faster rate than IC sales, according to a new report from IC Insights. R&D and engineering expenditures increased at a compound average growth rate (CAGR) of 12.7 percent between 1990 and 2007, while semiconductor sales grew at a CAGR of 9.9 percent in the 17-year period. Read more >>

A groundbreaking ceremony for the new Applied Materials Operations Center at Changi North Industrial Park in Singapore took place earlier today, and saw the attendance of several Applied Materials executives, including Mike Splinter (pictured), company President and CEO. Chairman of the Singapore Economic Development Board Lim Siong Guan and U.S. Ambassador Patricia Herbold were also present for the ceremony. Read more >>