Silicon wafer market to rebound

''Thanks to double-digit growth in 3Q '09 in addition to 2Q '09, worldwide demand for silicon wafers for use in semiconductor production in 2009 as a whole will fall by less than previously forecast,'' said Takashi Ogawa, an analyst with Gartner, in a report.

''In 3Q '09, wafer demand registered a 17 percent increase over 2Q '09 due to a seasonal surge in demand for semiconductor device production. The effect of inventory replenishment efforts in the silicon wafer supply chain, seen in the previous quarter, is fading,'' he said. ''We think that future demand will be closely associated with device production, in a normal correlation. In 4Q '09, we expect wafer demand to continue to grow steadily.''

What about 2010? ''In 2010, demand will soften in the first quarter, due to some cutbacks in device production triggered by excess inventory after the seasonal surge in demand,'' he said. ''But a solid recovery will begin in the second quarter. Although quarterly growth is expected to be moderate, the annual increase in demand for silicon wafers will be 23.4 percent.''