Wave Issue 0208 3/8/02 Article 6-01

***Fabless Semiconductor Association Unveils 2002 Wafer and
Packaging Demand Survey Results
(March 6)

The Fabless Semiconductor Association (FSA), a semiconductor
trade association, today announced the results of its eighth
annual Wafer and Packaging Demand Survey, which was conducted in
conjunction with PricewaterhouseCoopers, LLP.

The responses indicate a positive trend, where many participants
were optimistic that a turn-around will occur in 2002, based on
the stabilization of inventory levels. Survey participants, which
included 131 fabless companies and 14 integrated device
manufacturers (IDMs), expect a short-term 17 percent increase in
wafer demand from Q4 2001 to Q1 2002. Excluding companies that
claim wafer demand will double in 2002 over 2001, the wafer
demand increase in the first quarter 2002 is estimated to be only
2 percent over actual fourth quarter 2001 demand. Similarly,
these companies are only expecting a 16 percent increase in wafer
demand for 2002 over actual demand for 2001.

Looking into the future, the Survey indicates continued,
compounded growth for 2002 and 2003. The findings show a trend
toward a sequential increase in wafer demand per quarter during
2002. Long-term forecasts were optimistic, with all respondents
forecasting a 78 percent wafer demand increase in 2002 over 2001.

In terms of revenue performance, public fabless revenues were
down 21 percent year-over-year for 2001, totaling $12.7 billion
compared to $16 billion in 2000, but IDMs fared worse with
revenues declining 27 percent year-over-year. Nevertheless, the
fabless sector demonstrated better than average industry
performance due to less dependence on very volatile memory
products and a greater focus on products using advanced
technologies.

The survey also addresses issues and results surrounding
projected packaging supply and demand, information on the fabless
movement towards smaller design geometries, IP demand, a
breakdown of wafer demand by sector and business application, as
well as foundry development forecasts.

Additional survey sponsors are Chartered Semiconductor, TSMC and
UMC.

The survey is available to FSA members or other interested
parties via the organization's Web site.

www.fsasurvey.com