VIEWPOINT 2019: Stephen Rothrock, President & CEO, ATREG, Inc.

Stephen Rothrock, President & CEO, ATREG, Inc.

Despite the industry's optimistic growth forecasts, global uncertainty generated by trade wars is compelling advanced technology companies to constantly rethink their manufacturing strategies. In 2019, infrastructure-rich cleanroom manufacturing assets are going to continue to play an essential part in shaping these strategies to ensure global competitive advantage as more wafers are needed and more facilities are being built worldwide, e.g. in China or Intel's $11 billion expansion in Israel.

Whether to divest or acquire, go brownfield or greenfield, ATREG has helped some of the world's largest and most reputable companies in the disposition and acquisition of back-end fabs and cleanrooms over the past 20 years. In the last year and a half alone, this includes the disposition of Micron's Akita, Japan assembly and test plant to Taiwanese Powertech Technology (PTI) or the disposition of Qualcomm MEMS Technologies' Longtan, Taiwan display facility to TSMC who converted it into an advanced packaging production plant.

In 2018, ATREG worked on more buy-side assignments than ever, witnessing increased interest in U.S.-based manufacturing as well as a continued lack of 200mm and 300mm capacity. And we should not expect 2019 to be any different. Despite a slowdown in semiconductor M&A activity, the global semiconductor market will continue to consolidate as the manufacturing needs of companies evolve with market changes. This has put a strain on manufacturing space and resulted in a number of new capital projects and expansions that may become difficult to fulfill in the current market.

A shortage of existing manufacturing space means cleanrooms and operational fabs will sell at a premium. Many companies are also looking at greenfield sites with Government incentives playing an active role. Running in tandem, there is still a shortage of used and new production tools with lead times in excess of one year to purchase new fabs from OEMs or equip new fabs.

Stephen Rothrock, President & CEO
ATREG, Inc.
http://www.treg.com

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