Fifteen wafer fabs were shut down in 2010 and eight more will see a similar fate in 2011, according to SEMI. As more IDM companies aim to cut costs and become fab-lite and fabless, their outsourcing orders will only increase in coming years.

According to SEMI statistics, 27 wafer fabs were closed in 2009, of which 11 were 8-inch fabs and one was a 12-inch facility. For 2010, six 8-inch, three 6-inch, two 5-inch, a 4-inch, a 3-inch and two 2-inch fabs were shut down.

Based on current announcements, 2011 will see one 8-inch, three 6-inch, two five-inch and two 4-inch fabs close down, and most of the plants will belong to IDM companies.

Taiwan Semiconductor Manufacturing Company (TSMC), United Microelectronics Corporation (UMC), Globalfoundries, SMIC and Samsung Electronics will likely benefit from IDM players aiming to become fabless.