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

CTOnews.com news on March 6, according to Taiwan Economic Daily, the storm of price cutting in the mature process of foundry has expanded, and it has even been reported that some wafer factories are willing to discount 10% to 20% in exchange for customer orders.

According to the report, due to the lower-than-expected increase in capacity utilization, wafer factories such as United Power, Ligan and World Advanced have come up with the strategy of "as long as you put in the film, the price can be discussed." if customers are willing to place more orders, the price discount can reach 10% to 20%, which is even greater than the previous price reduction.

For wafer foundry mature process discount 10% to 20% in exchange for customer orders, TSMC said that it would not comment on any customer business or market rumors; UMC, LSMC and World Advanced did not respond.

According to the "Central News Agency," a number of IC designers pointed out that at present, Taiwan wafer foundry has not reduced its price, but it is offering a preferential plan for customers who cooperate with pre-release and stock preparation, which is equivalent to a price reduction in disguise, and the rate of discount depends on the number of films sold.

As reported before by CTOnews.com, it has been reported earlier that Samsung Electronics, the second largest foundry in the world, has reduced its price by 10% (mature process) in an attempt to grab an order, and now Taiwan foundry has to offer a greater price reduction in order to fill production capacity, meaning that semiconductors as a whole have entered a period of inventory adjustment and accelerated their transition to a buyer's market in terms of foundry manufacturing in the mature process.

According to the industry, under the influence of weak market demand and the traditional off-season, it has had the greatest impact on mature processes, especially 8-inch wafer factories, making 8-inch factories a "worst-hit area." even 8-inch factories generally have a capacity utilization rate of only about 50% to 60% in the first quarter.

12-inch factory, because the supporting can support advanced production capacity, machines can be deployed, coupled with still automotive, 5G communications and other demand support, the price drop is relatively small.

The industry has revealed that at present, the main goal of the mature foundry industry is to increase the utilization rate of capacity. Now, if the client has a "big order", the bargaining space is more flexible than before, and the price discount is up to 20%. However, it is not known whether the price reduction strategy will be effective.

Related readings:

"A shot is a tough move: it is reported that Samsung took the lead in launching a price war for wafer foundry, and UMC and the world's advanced companies were forced to cut prices."

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