Production of chips using 12-inch (300-millimeter) wafers will nearly double from 2010 to 2015, as chip producers increasingly employ them for older, more mature products, according to IHS iSuppli report.

The IHS iSuppli Global Silicon Forecast Market Tracker said foundries and integrated device manufacturers (IDMs) will produce some 5,608.5 million square inches of silicon on 12-inch wafers in 2011, up from 4,799.4 million in 2010.

IDMs will produce 8,753 million square inches of silicon on 12-inch wafers by 2015, equivalent to a compound annual growth rate (CAGR) of 12.8% during the five-year period.

The usage of high-volume 12-inch wafer manufacturing by semiconductors makers for advance products ramps up the prospect of moving to the next level – the 18-inch wafer, the report said.

IHS iSuppli suggested the transition to 18-inch technology by wafer manufacturer represents the most logical approach to achieve the cost reductions.

IHS anticipates that the transition to 18-inch wafers by semiconductor firms will begin in 2015, despite the fact that they are unknown about the benefits of the new technology.