Shulou(Shulou.com)11/24 Report--

CTOnews.com, February 1, according to Taiwan's Economic Daily, Samsung's chip business profits plunged more than 90% last quarter, but revenue from its wafer manufacturing business, which competes with TSMC, hit record highs in the last quarter and 2022, and profits also increased last year, reflecting the expansion of advanced process capacity and a greater dispersion of customers and applications.

However, Samsung admitted that this quarter can not escape the industry inventory adjustment pressure, will make the wafer foundry business capacity utilization began to decline. The industry is worried that Samsung may launch the tactics of reducing prices and grabbing orders, which is not conducive to TSMC, UMC and other manufacturers.

According to industry analysis, the capacity utilization rate of wafer foundry has generally declined recently, and the capacity utilization rate of UMC has changed from full load to about 70%. It is reported that the capacity utilization rate of some production lines of some manufacturers is only 50%, but TSMC and UMC are sticking to the price. TSMC's price has increased by 6% this year, while UMC expects the average product price (ASP) to be flat this quarter.

Taiwan media pointed out that in this context, if Samsung cuts prices and grabs orders, it will be very attractive to IC designers and IDM factories, which are facing huge inventory pressure and unwilling to pay more manufacturing costs. Samsung can not only fill the capacity gap, but also help to increase market share.

CTOnews.com learned that Samsung did not provide its wafer foundry capacity utilization data and quotation dynamics, but only revealed the industry inventory adjustment, resulting in a decline in wafer foundry capacity utilization, but it is still expected that automotive and high-speed computing demand will bring recovery in the second half of the year, will be the second generation of 3nm process product competitiveness to win new customers, and has set up an advanced packaging team to support wafer foundry business needs.

In addition, Samsung has updated the information on the most advanced chip process. The yield of the 3nm process is stable, and the second generation of the 3nm process is making rapid progress. It is also developing the 4nm process for automotive applications. This year, it will focus on the development of the 2nm process.

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