8-inch wafer foundry continued to rise 1-2 percent, SMIC will benefit

Set micro-grid news, the upstream silicon wafer prices continued to rise, 8-inch wafer fab stabilized as demand, coupled with the overall tight production capacity, power management IC, fingerprint IC recognition demand continued growth, the first quarter of this year is expected to 8-inch crystal Round foundry prices will be successfully raised 5 to 10%.

The overall demand for 8-inch fabs is relatively flat in the first half of 2017. As the demand in the peak season of the third quarter appears, and the short-term expansion of 8-inch foundries is unlikely, the overall production capacity is still tight. Continued to rise, 8-inch wafer foundry prices in the first quarter of this year is expected to increase 5 ~ 10%, SMIC or will be the beneficiaries.

8-inch fabs to raise OEM prices, is expected to silicon wafer material prices passed the cost, contribute to the performance of gross margins, and the other in the future prices will continue to rise, customers will increase during the off-season volume, Help the first half of this year there is support for off-season operations.

In 2017, the demand for 12-inch silicon wafers fell short of demand and prices rose quarter by quarter. The price of 8-inch silicon wafers also rose in the second half of 2017 with a cumulative increase of about 10%. The price of 8-inch silicon wafers in the first quarter of 2018 will then rise.