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Chip Prices Continue to Rise, and UMC and SMIC may Increase the Quotation of Wafers in the Third Quarter

Update time : 2022-05-26 11:00:38

According to Taiwan's supply chain media DIGITIMES, major wafer foundry UMC, world advanced, Li Jidian, SMIC international and lattice core will plan to increase their wafer foundry quotation again to cope with the continuous shortage of production capacity.

It is reported that the planned increase in the quotation of wafer foundry in the third quarter will be higher than that in the first half of this year, including 8-inch and 12 inch wafers. In addition, TSMC has canceled all price discounts for new orders this year and orders in 2022, which is equivalent to price increases. With the further rise of OEM prices, it is expected that the wafer foundry will release strong revenue and profits in the third quarter. At present, customers are waiting in line for the capacity of the wafer foundry, and the 8-inch wafer foundry is the top priority of customers. However, although TSMC, UMC, SMIC and other manufacturers have announced plans to expand their mature processes, the new capacity will not be opened immediately.
DIGITIMES also said that due to the extreme shortage of wafer foundry capacity, in order to meet the huge order demand of customers, the wafer foundry has successively expanded investment and production. The mature process capacity will be opened successively from 2022 and reach the peak in 2023. At that time, the capacity shortage is expected to be alleviated. However, as the production capacity is opened one by one, the industry may face oversupply in the future.
Under the serious shortage of global mature process capacity, in order to meet the needs of customers, a number of wafer foundry recently announced the expansion of production. Among the wafer factories in Chinese Mainland, SMIC, Huahong Semiconductor and other manufacturers are promoting the 12 inch production expansion. SMIC announced in March that its Shenzhen wafer plant would be put into operation in 2022.
In terms of capacity construction, SMIC plans to expand the production of 10000 pieces / month of mature 12 inch production line and no less than 45000 pieces / month of mature 8-inch production line this year. In terms of the follow-up new plant plan, SMIC international, together with the national integrated circuit industry investment fund and Beijing Yizhuang International Investment Development Co., Ltd., established SMIC capital in December last year. The first phase of the project is planned to be completed in 2024. After completion, about 100000 12 inch wafers per month will be produced.

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