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This paper focuses on how to use Daily-Demand Method (DDM) to translate a simulation model into a capacity analysis model, which can be manipulated on finding the maximum capacity of product-mix, prediction of bottlenecks and optimization of capacity. Using DDM not only can consider the variant limitations of semiconductor fabrication but also improve the run time of simulation. In comparison to a steady-state simulation, DDM can save time from hours to less than 10 minutes. This methodology has successfully implemented at MXIC Fab-2 from Jul 2002. In this paper, we provide several examples of Fab-2's application, as well as the findings of capacity utilization.