Chuanlian Power grabbed Samsung OLED driver IC big order

28nm process foundry is scheduled for operation in the second half of the year

Following the release of Samsung's 28-nanometer image signal processor (ISP) to UMC foundry last year, the semiconductor industry has reported that UMC has recently obtained Samsung's 28-nanometer OLED (organic light-emitting diode) drive IC foundry order, with a monthly production capacity of more than 10,000 pieces, and will be expected to inject UMC operations from the second half of the year.

Semiconductor demand is booming, limited by their own production capacity is insufficient, Samsung Electronics' LSI Division last year will be the image signal processor (ISP) released to UMC FOUNDRY, making UMC 28-nanometer process more sought-after, production capacity supply is in short supply to frequent price increases, the client pointed out that UMC 28-nanometer foundry price has been raised to more than TSMC.

Foundry prices have risen more than TSMC

Semiconductor industry out, recently UMC and Samsung 28 nanometer OLED driver IC large order, coupled with Samsung to Taiwan IC design factory purchased OLED driver IC, but also put into production, the monthly production capacity of more than 10,000 pieces, due to the OLED driver IC gross profit is high, the second half of the year from the injection of UMC revenue and profit can be expected. In addition to the application of OLED driver ICs in high-end mobile phones, the penetration into laptops, televisions and other applications has also increased, which is expected to drive the capacity utilization rate of 28 nanometers of UMC to continue to maintain full load.

In response to the demand for orders, UMC announced the day before yesterday that from October last year to February 7 this year, taiwan has obtained a total of NT$1.495 billion in equipment, and Xiamen Lianxin Factory has obtained NT$1.256 billion. With the UMC expansion plan, the newly announced equipment will obtain equipment that should be required for 28 nanometers, and the FAB 12A P5 plant of UMC PLANS to increase the production capacity of 10,000 pieces in the second quarter, which is equivalent to Samsung's large order to fill; the Xiamen plant will also increase the production capacity of 10,000 pieces; and the capacity of the Nanke Fab 12A P6 plant will be expanded to 32,500 pieces in the second quarter of next year.

Although General Manager Wang Shi pointed out that the 28-nanometer production capacity is likely to be oversupplied in 2023, he also believes that 28nm is already a sweet process node for application, and the demand will continue, and UMC has signed long-term contracts (LTA) with many customers, which will cover nearly 80% of UMC's 28-nanometer production capacity, even if the market conditions change in 2023, the impact on UMC is relatively small. The industry pointed out that Samsung is also one of UMC's long-term customers, but UMC does not respond to customer-related order questions.

Source: Liberty Times

Cover image source: Paixin.com