Tokyo, May 25: The utilisation rate of the world's chip factories hit a three-year high in the first quarter due to robust demand for digital electronics and personal computers, a global semiconductor industry association said on Tuesday.
The utilisation rate came to 93.4 per cent in January-March, posting quarter-on-quarter growth for the fifth straight quarter.

The first-quarter figure was the highest since the third quarter of 2000, when the utilisation rate was 96.4 per cent, the Semiconductor International Capacity Statistics (SICAS) group said.

"Data clearly shows a semiconductor recovery," an official at the Japanese unit of SICAS said.

"Rather than being led by one particular product, this is a broad-based recovery with demand coming from mobile phones, personal computers, digital home electronics and automobiles." After a boom year in 2000, the semiconductor market became mired in its worst downturn in 2001 and 2002.

Capacity for all integrated circuits rose to 1,372,500 silicon wafer starts per week in January-March from 1,369,600 in the previous quarter.

Actual wafer starts, which reflect demand for chips, amounted to 1,281,600 per week, compared with 1,258,400 in the final quarter of 2003.

A wafer start is the lengthy process during which chip circuits are etched onto silicon wafers.

Utilisation rates above 90 per cent usually prompt chip makers to start building new factories.

Bureau Report