Due to tight supply, several major foundries around the world have raised their Q2 quarter quotations by 10-20%, and the overall increase is not much different from Q1. However, the latest news from Korean media pointed out that some foundries have increased by as much as 50%...

Semiconductor supply shortages will severely disrupt the supply chain. At the same time, chip foundries are increasing the price of chips. International electronic business conditions have previously reported that several major foundries in the world will raise their foundry prices again by 10-20% in the second quarter from the previous quarter, and the overall increase is similar to that in the first quarter.

However, the latest news from Korean media pointed out that some foundry contracts have increased by as much as 50%.

ETNews quoted a message from the person in charge of a South Korean Fabless factory, "Our customer (company) has requested to increase the supply of semiconductors, so we have renewed the contract with the foundry company at a price 50% higher. But obviously, the previous price is no longer Applicable, this part can only be adjusted in consultation with customers.” According to the manufacturer, the main reason for the price increase of the foundry is the continuous surge in demand for analog chips, power semiconductors and display driver chips, as well as the increase in 8-inch foundry production capacity. Long-term shortage.

In terms of foundries, a South Korean foundry executive said: "At present, our production capacity is not yet able to accept orders from all customers. At the same time, as the demand for Fabless plants increases, the overall price of the foundry market is (continuing) Rise.” The latest research report from Counterpoint, a market research agency, shows that some products in 8-inch wafer foundries have increased their prices by 30% to 40% compared with the second half of last year. It is believed that a new wave of foundry price increases is expected. Further push up the procurement costs and product prices of the semiconductor industry chain.

"At present, even the price of second-hand 8-inch semiconductor equipment has jumped to a new high. Delivery time is also more than 12 months." A person in charge of a semiconductor equipment distributor said.

According to Gartner analyst Kanishka Chauhan in the latest report, the semiconductor supply shortage will severely disrupt the supply chain and will restrict the production of a variety of electronic equipment in 2021. At the same time, chip foundries are increasing the price of chips. It will also be transmitted to downstream equipment. The agency also predicts that the global semiconductor supply shortage will continue throughout 2021 and return to normal levels in the second quarter of 2022, while the substrate capacity limit may be extended to the fourth quarter of 2022.

In fact, the increase in foundry prices can be said to be global. The international electronic business situation has previously reported that after Q1 and Q2 each increased their OEM prices by 10%, news pointed out that UMC also plans to increase prices for 8 inches and 12 inches again from June 1. Bidding for production capacity and quarter-to-quarter growth strategy is expected to top the wafer foundry industry.

The foundry production capacity is short, and it is not easy to increase production

International Electronics Co., Ltd. understands that it is not easy to expand production to solve the shortage of supply. Large-scale investment is required, which brings a heavy burden to the foundry. Although some idle space can increase production equipment, due to the soaring price of semiconductor equipment, it is difficult for OEMs to purchase willingly. According to data, an 8-inch wafer fab alone will cost 1 billion US dollars, and a 12-inch fab will invest as much as 3 billion US dollars. In addition, after manufacturers are worried about expanding the production capacity of mature processes, if there is an alleviation of supply and demand in the future, production capacity If idle, manufacturers will suffer huge investment losses.

However, in view of the increasing shortage of foundry capacity, global foundries have also expanded investment and production in order to meet the huge order demand of customers. It is expected that mature process capacity will be launched in 2022 and reach a peak in 2023. At that time, the tight capacity situation is expected to be alleviated. Currently, TSMC, UMC, World Advanced, Power Semiconductor Manufacturing, Samsung, Intel, SMIC, and Hua Hong Semiconductor have corresponding expansion plans.