Abstract: Second-tier foundries are aligning with TSMC to increase the price of foundry OEMs. Downstream chip makers are unable to smoothly transfer cost increases to downstream customers in the face of fierce market competition.
Gathering micro-messages (Text/Xiaobei) TSMC looks at the cooperative relationship with its customers, and its foundry offer is stably pursued. However, in the event of rising upstream wafer costs and shortage of 8/12-inch wafer capacity, TSMC will To increase the price of foundry foundry. As the world's foundry boss, OEM prices have always been the lack of room for bargaining. It is reported that TSMC's 8-inch wafer production capacity can not meet customer demand in the short term; In addition, TSMC will import Apple in the second half Processor orders, which will occupy the vast majority of TSMC's advanced manufacturing capacity.
To Taiwan Semiconductor Manufacturing Co., the second-tier wafer foundry brewing up quotations
This year, the Internet of Things, automotive electronics orders have flocked to 8-inch wafer fabs. This has led to an apparent shortage of 8-inch wafer foundry capacity. Second-tier wafer foundries other than TSMC have also encountered rising upstream wafer costs, and production capacity is in short supply. Therefore, they are rushing to upgrade the wafer foundry prices.
It is reported that second-tier wafer foundries in China and Taiwan have formally issued price notifications to chip customers in the second half of 2018. Taiwan's IC design company revealed that the price of OEMs for 8-inch wafers rose by 20 to 30% in the third quarter, except for VIPs. Outside the customer, most chip manufacturers can only accept price increases.
It is worth noting that why the second-tier foundries collectively promoted this price increase because the price rise of second-tier foundries was higher than that of first-tier foundries such as TSMC. This could be from two. In terms of dimensions, on the one hand, there is a strong demand for foundry and some orders have to be transferred from first-tier foundries to second-tier foundries; on the other hand, the price of foundry prices will increase more than raw materials, etc. Upstream cost increases, second-tier foundries collectively promoted this price increase, downstream customers can only accept price increases. Industry experts said that UMC, SMIC and Hua Hong will be the main wave of this foundry surge in prices Beneficiaries.
Wafer foundry price increases, downstream chip makers are under pressure
According to the usual experience, the rising cost of foundry costs can be transferred to downstream chip makers and promote chip prices. However, in this wave of price increases, downstream chip makers may not be able to digest and absorb the rising prices of upstream chips. Price kinetic energy.
According to the usual practice, for IC chip companies, as long as customers do not require a 5-10% reduction in chip prices per quarter, the upstream costs will increase and pressure will be easily absorbed. For the first-line IC chip companies, they can even take advantage of the upward trend. The price strategy shifts cost increases to downstream customers.
China's domestic IC design companies and Taiwanese IC design companies are madly robbing the market. If Taiwan's IC design companies adopt a price-adjustment strategy, they will transfer the pressure of rising costs to downstream customers. It is very likely that most mainland customers will be lost. Therefore, Confronted with this up-stream cost-rising trend, Taiwan's IC chip company is likely not to adopt a price increase strategy and maintain a conservative attitude towards its gross margins outlook for the third quarter of 2018.
According to Taiwan LCD driver IC makers, the short-term 8-inch foundry production capacity is obviously insufficient, the company has chosen to use 12-inch wafer foundry to ease the lack of 8-inch supply capacity, but because of 12-inch wafer foundry The price will be 20~30% higher, so it will have a certain impact on the company's gross profit. The follow-up will communicate with the downstream customers depending on the situation, hoping to transfer the rising costs.
For MediaTek, who hopes that the gross profit will return to 40%, it will also face the pressure of increasing the cost of upstream foundry industry. Industry experts speculate that MediaTek may choose to self-digest the upstream manufacturing costs given that MediaTek and Qualcomm and Spreadtrum have violently smashed the situation. Instead of choosing strategies to increase the price of chips.