Text Box: Realized capacity utilization stood at 95% in September, only 8 points higher than the total utilization rate. With equipment bookings shrinking, the gap between realized and total utilization rate will keep narrowing for the remainder of the year. 

Unlike the boom years of ‘00, ‘04 and ‘06, there is no huge amount of “hidden backlogs” in the system, lowering the risk of overcapacity.

                      -- Aida
  Revisions note[1]   Definitions note[2]   Last Update: 22-Oct-07 TCI 71112.04    

Revisions of VLSI's Capacity Utilization Data  occur in three time frames: monthly, quarterly, and annually.  Monthly revisions occur due to updates to equipment shipments, which are used to determine capacity and WSTS unit shipment revisions, which is used to determine production.  Quarterly revisions occur due to our analysis of equipment suppliers' quarterly results, in which we establish quarterly shipments for each supplier; occasional WSTS unit shipment revisions; and reconciliation with SIA SICAS capacity inputs, which allows us to tune our factors for obsolescence, die sizes and yields.  Annual revisions occur due to our final annual analysis of equipment suppliers, in which we reconcile quarterly shipments for each supplier; our annual analysis of silicon consumption, die sizes, and yields; WSTS unit shipment revisions; and SICAS capacity data revisions. 
Total Capacity Utilization includes both of the following:

Unrealized Capacity that is committed and in the pipeline, either as tools planned with delivery slots taken; on back order; or newly installed, but not qualified and running wafers. 

Realized Utilization includes only functional capacity.  It does not include unrealized capacity, nor capacity that is still counted as in production, but is only capable of producing obsolete or discontinued products; nor capacity that is moth balled for similar reasons.