Affected by the situation in Russia and Ukraine and the epidemic, chips are not only in short supply, but also expensive in price. The chip business of Samsung and Intel companies has also been affected. Today, there is good news from the chip foundry.
On April 11, local time, according to media reports, wafer foundry mature process manufacturers have successively announced that they will not increase the price of mature process foundry in the near future. This also means that this suspension of price increases has terminated the rise in mature process quotations for 6 consecutive quarters since the end of 2020.
At present, UMC, Lijidian, and the world's advanced chip manufacturers are mainly based on mature processes, while TSMC is less affected by mature processes, and foundry prices have not fluctuated too much.
This time, a number of advanced chip foundries announced the suspension of price increases, which is related to the weakening of the demand side of the market such as power management ICs, TDDI, and large-size panel driver ICs for Android mobile phones, and the inventory of such products is still relatively full. However, the suspension of price increases does not mean that the demand in other types of chip markets has decreased.
At present, the demand for automotive chips is still very large, and the production capacity of core companies such as TSMC and UMC is limited, and the supply side cannot meet such a huge demand market for the time being.
Once the mature process of wafer foundry suspends price increases, it will first be reflected in the relevant application orders of advanced large-size driver ICs in the world.
The suspension of price increases in mature processes will bring many chain reactions. Analysts believe that one is that the price increase trend of some upstream raw materials will be suppressed; the second is that the price of some downstream products will decline, for example, in September last year, after Apple found TSMC, due to the price increase of TSMC, the cost of Apple has risen, and now the price of some chips has not risen, which will also affect downstream products.
I wonder when the car chip-related business will stop growing?
Text | Zhao Jinjie title | Zeng Yi reviewed | Lee Ze-plutonium