Japan Polycrystalline Si Output Forecasted 25% Y/Y Lower in 2009

Japan Society of Newer Metals announced on Monday the society revised down the annual output forecast of Japanese high purity single crystal silicon for semiconductors to 6,274 tonnes in 2009. The previous forecast announced in February was 7,940 tonnes, 5% minus compared with 2008. The latest forecast represents 25% minus compared with 2008. Japanese silicon makers’ production stayed lower than expected until May due to inventory adjustment in semiconductor industry.

Silicon wafer sales have rebounded since January-February. Device makers’ inventory adjustment has progressed toward April-June. Japan Society of Newer Metals expects the demand for silicon wafers, mainly for 300mm diameter wafers, could increase in mid 2009 with an expectation for semiconductor market growth in 2010. Japanese silicon makers’ operation may recover 80% level in the second half of 2009 compared with the peak in 2008.

However, Japanese annual sales of high purity polycrystalline silicon are estimated to decrease by 24.3% to 6,523 tonnes in 2009 from 2008 due to inventory adjustment during January-March. The sales would decrease by 26.9% to 3,136 tonnes for domestic market and by 21.8% to 3,387 tonnes for export. The previous sales forecast was 8,190 tonnes.