The majority of new fab capacity to be created in china will be for 300 mm and 200 mm wafer fabs, with such fabs accounting for well over 80% of Chinas total wafer capacity by 2010. Over this period, fab equipment spending, for both new and used equipment, is expected to be in the $2.5 billion to $3.0 billion range per year. Overseas equipment companies are very active in China providing sales and service support to customers, and in some examples, operating research and development programs. Meanwhile, local vendors for fab equipment have emerged in recent years to explore the opportunities in the 200 mm and 300 mm tool market Initiatives and programs are in place to encourage the development of domestic infrastructure to support local equipment vendors and fab tool maintenance and refurbishment.
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