It was reported on April 13 that the current global wafer foundry capacity is still very short, and there is no sign of relief. According to reports from Digitimes, UMC, which took the lead in rising at the beginning of the fourth quarter of 2020, is expected to increase the price of 8 inches and 12 inches again from June 1, in addition to negotiating prices for major customers such as Samsung Electronics and Novatek. Quotation, its strategy of bidding for production capacity and quarter-to-quarter growth, the rise ranks first among wafer foundries.
The most concerned is that TSMC, which has never responded to the news of price increases before and has constantly emphasized customer relationship priority, has started to rise in a low-key manner in the first quarter of 2021. At present, in addition to canceling sales discounts, 8-inch and 12-inch mature processes above 28nm are also available. The price of each wafer has risen by more than 10%.
The market expects that the production capacity of wafer foundries is still tight, and the demand for processes above 28nm will surge to at least the first half of 2022. The factories are rising in an all-round way, and the increase is not small, and the overall profit such as gross profit margin is expected to be amazing. score.
Benefiting from the epidemic, applications such as working from home and distance learning have increased significantly, and the demand for consumer electronics such as notebook computers and tablet computers has exploded. In addition, the supply chain is afraid of reproducing the broken keys in the first quarter of 2020, and panic preparations have been launched, and Huawei The ban has driven the supply chain to pull goods in advance, and the 5G and AI generations are coming, which has caused the global foundry production capacity to be tight, especially the 8-inch production capacity queue has been continuously elongated.
UMC took the lead in launching the first wave of price increases in the fourth quarter of 2020, and the second wave of price increases in the first quarter of 2021 will be extended to 12 inches, including TSMC, World Advanced, NSMC, SMIC, etc. price hike.
Among them, excluding urgent orders, new orders, etc., UMC, which has so far raised prices twice to most customers, is expected to raise the 8-inch and 12-inch foundry prices again in June, starting at least 10%. Although the second half of the year is undecided, But at present, IC design industry expects UMC to adopt the strategy of increasing every quarter.
And LSMC, which has been following in the footsteps of UMC, has also been snapped up its production capacity. In April and May, the price has been raised again, with 8-inch and 12-inch wafers rising by about 15-20%.
The most concerned thing is that although TSMC has not risen in 2020, it will cancel about 10% of the sales discount in 2021. It has recently announced that it will not resume in 2022. More unexpectedly, TSMC has also started to raise 8 inches. , 12-inch 28nm and above mature process quotations, the rough estimate is that the price of each wafer will increase by more than 10%. Among them, the most sought-after 8-inch special process has even increased by more than 20%, and the 12-inch 28nm and above process wafer quotations also continue to see new high quotations .
IC designers said that it is not just Taiwan foundries that have a huge shortage of capacity and price increases. Previously, many manufacturers sought support from SMIC, but now SMIC will also increase by 30%. With the announcement of major foundries one after another As for the price increase strategy, since April 1, it has also been obvious that a number of IC design companies have released increases.
It is understood that May 1 will be MediaTek’s largest rise in the past six months, and it is estimated that it will rise by at least 10-20%. However, Realtek, which has not experienced an obvious rise in the first quarter, is also rumored that the average rise in June will exceed 20%. Longdian also announced that on May 1, it will increase the quotations of touch and fingerprint Chips by about 15%, in response to the high foundry prices that are rising almost quarter by quarter.
It is worth noting that due to the recent quarterly rises in wafer foundry, packaging and testing, IC design companies can’t bear to increase their quotations. A little less, taking advantage of the situation to actively compete for customers. For example, Nuvoton reported that it would repel Lianyang and win a large order from Asus. In terms of semiconductors, SMIC also unexpectedly received many IC design companies due to insufficient capacity of UMC. one.
In addition, the past off-peak season effects of the global semiconductor industry have all been disrupted. From the perspective of TSMC, UMC and the world’s advanced, the off-season performance in the first quarter has never recorded a new high, and the second quarter will be even better. Under the price, the gross profit will be quite beautiful, the profit will further increase, and the annual profit will reach a high level. The performance of the packaging and testing, IC design and other industrial chains will also surprise the market, and the profit will erupt again in the second quarter.