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The price of 8-inch wafer foundry has increased by 10-20%, and the whole line of power/power IC/driver IC is tight
Recently, UMC, World Advanced and many other foundries have announced the news that their 8-inch production capacity is fully loaded. At the same time, the growth of the 5G and automotive electronics markets is driving the continuous growth of demand for 8-inch wafer foundry. According to the news, due to the tight production capacity, 8 Inch foundry prices are expected to rise by 10-20%, and capacity constraints may continue until 2021.
The production capacity of major foundries continues to be fully loaded, and prices are expected to rise by 10-20%
8-inch (200mm) wafers are currently the mainstream of IC manufacturing. According to data, from the perspective of operating revenue, Hua Hong and the world’s advanced 8-inch wafers account for revenue from major fabs in mainland China and Taiwan. Up to 99% and 100%. In addition, SMIC’s 8-inch wafers accounted for 75%, UMC’s 46%, and TSMC 30%.
The production capacity of major foundries continues to be fully loaded, and prices are expected to rise by 10-20%
8-inch (200mm) wafers are currently the mainstream of IC manufacturing. According to data, from the perspective of operating revenue, Hua Hong and the world’s advanced 8-inch wafers account for revenue from major fabs in mainland China and Taiwan. Up to 99% and 100%. In addition, SMIC’s 8-inch wafers accounted for 75%, UMC’s 46%, and TSMC 30%.
Chart: China's main 8-inch factory capacity statistics
NH Investment&Securities analyst DohHyun-woo recently pointed out that the capacity utilization rate of 8-inch fabs such as TSMC, UMC, and World Advanced has been close to 100% recently. Due to strong demand and tight supply, these companies have increased chip unit prices by 10-20%.
UMC issued a financial report on July 29 that the company's capacity utilization rate for 8-inch and 12-inch wafers in the second quarter was close to full capacity, of which 8-inch wafer shipments reached 2.22 million pieces, and some customers continued to add orders in the second half of the year. Wang Shi, general manager of Lianhua Electronics, said that the company's wafer shipment growth is mainly due to the growth in demand for wireless connections, display drivers and memory controller ICs in related fields such as computers.
World Advanced’s financial report released on August 6 said that the company’s operating income in the second quarter reached 8.227 billion yuan, an increase of 18.9% year-on-year. World Advanced’s chairman Fang Lue said that the demand for 8-inch wafer foundry will continue to be strong in the second half of the year due to large size and The overall growth of small-size panel driver ICs, power management ICs and power components is expected to be in short supply in the 8-inch foundry market until next year. Therefore, the company decided to increase the monthly production capacity of the Singapore plant by 10,000 pieces.
It is worth noting that SK Hynix is planning to enter the foundry field. In March of this year, SK Hynix bought MagnaChipSemiconductor's foundry division for USD for 435 million, and obtained its 8-inch foundry production line. And technology, the division will be split up at the end of this year at the earliest. Recently, SK hynix has renamed the business to KeyFoundry and is preparing to attack the foundry market. It is expected that the business will contribute a portion of 8-inch under the integration of SK hynix Foundry capacity.
In fact, the recent second-quarter financial reports of Hua Hong Semiconductor and SMIC also revealed the hot demand for 8-inch wafer foundry.
Hua Hong Semiconductor’s 2020 Q2 performance report shows that the company’s overall capacity utilization rate reached 93.4%, an increase of 11% from the previous quarter. Its Hua Hong Wuxi plant had revenue of US$9.5 million in the second quarter, and its capacity utilization rate reached 38.4%, an increase of 31.4% from the previous quarter. Hua Hong currently has four wafer fabs. According to data, the company's 8-inch (200mm) wafer foundry has a monthly production capacity of 178,000 wafers, and its capacity utilization rate is as high as 100%. The company’s president and executive director, Mr. Tang Junjun, said that driven by the market demand for IGBTs, super junctions, MCUs and CIS, the company’s revenue in the second quarter reached US$225.4 million, achieving double-digit growth from the previous quarter.
SMIC’s financial report for the second quarter of 2020 shows that the company’s current capacity utilization rate remains at a high level, reaching 98.6% in the second quarter, an increase of 0.1% over the previous quarter, while only 91.1% in the same period last year. The monthly production capacity has increased from 476,000 in the previous quarter. The number of tablets has increased to 480,000. It is worth noting that before the end of this year, SMIC’s 8-inch production capacity will increase by 30,000 per month and 12-inch capacity by 20,000 per month.
SMIC stated that demand for power management, radio frequency, low power consumption, wearables, and special storage has been strong since last year. In the second quarter, SMIC’s related wafer revenue increased by 7% from the previous quarter and 25% year-on-year, resulting in overall consumer electronics revenue. The month-on-month growth was 8% and the year-on-year growth was 41%.
Some devices have a gap of 15-20%, 5G mobile phones, automotive electronics, etc. continue to drive full capacity
As can be seen from the above, this wave of 8-inch foundry production capacity is mainly driven by market demand in the PC industry, display driver, storage, power, power management IC and other fields. With full capacity, processors, panels, power management There will also be a large gap in the supply of ICs.
Compal General Manager Weng Zongbin previously stated that due to strong demand and tight upstream 8-inch foundry production capacity, PC shortages in the third quarter are expected to be more serious than in the second quarter, including processors, panels, power management ICs, etc. , The supply gap is about 15-20%, and it is expected that it will be difficult to completely solve it by the end of 2020.
Asus CEO Hu Shubin said that some parts and components have been in short supply since the latter part of the second quarter. The more serious ones are driver ICs, power management ICs and logic ICs. It is expected that the supply of PCs will exceed demand and the shortage of some parts will continue until 2021. The first quarter of the year.
To solve the problem, it is necessary to increase production capacity. However, it will take at least two quarters to convert 12-inch fabs or to expand production capacity by 8 inches. In addition, major manufacturers are expanding 12-inch fabs. Most semiconductor equipment factories have stopped producing 8-inch fabs. Equipment, so if semiconductor companies need to expand 8-inch factories, they may need to buy second-hand equipment.
In addition to the original gap, the improvement of 5G mobile phone specifications and the gradual recovery of the automotive market have led to a substantial increase in the amount of related devices, which will further drive the growth of 8-inch wafer foundry demand.
With the gradual commercial use of 5G mobile phones, the consumption of cameras and power management ICs will also rise sharply. In order to establish safety stocks, smartphone manufacturers will increase the demand for power ICs and fingerprint recognition under the screen. This will promote TSMC, UMC, and the world. The 8-inch wafer foundry capacity of advanced manufacturers continues to be fully loaded.
In addition, analog chip giant Texas Instruments and power device giant Infineon previously stated that with the gradual recovery of the automotive market, the consumption of power devices in electric vehicles has increased significantly. Data shows that the value of power devices in pure electric vehicles has increased by 14 times compared with that of fuel vehicles. Will also drive long-term growth in demand for 8-inch wafers.
summary
The demand is still growing, and the production capacity is fully loaded. It can be seen that only the expansion of production capacity can really solve the current problem. In fact, the current domestic 8-inch and 12-inch expansion are currently under construction. According to the statistics of Industrial Securities, the 8-inch and 12-inch expansion capacity are 405 respectively. , 2670kwpm, it can be foreseen that as the new production line of production capacity is gradually put into production, the problem will also be solved, but it will take time.
NH Investment&Securities analyst DohHyun-woo recently pointed out that the capacity utilization rate of 8-inch fabs such as TSMC, UMC, and World Advanced has been close to 100% recently. Due to strong demand and tight supply, these companies have increased chip unit prices by 10-20%.
UMC issued a financial report on July 29 that the company's capacity utilization rate for 8-inch and 12-inch wafers in the second quarter was close to full capacity, of which 8-inch wafer shipments reached 2.22 million pieces, and some customers continued to add orders in the second half of the year. Wang Shi, general manager of Lianhua Electronics, said that the company's wafer shipment growth is mainly due to the growth in demand for wireless connections, display drivers and memory controller ICs in related fields such as computers.
World Advanced’s financial report released on August 6 said that the company’s operating income in the second quarter reached 8.227 billion yuan, an increase of 18.9% year-on-year. World Advanced’s chairman Fang Lue said that the demand for 8-inch wafer foundry will continue to be strong in the second half of the year due to large size and The overall growth of small-size panel driver ICs, power management ICs and power components is expected to be in short supply in the 8-inch foundry market until next year. Therefore, the company decided to increase the monthly production capacity of the Singapore plant by 10,000 pieces.
It is worth noting that SK Hynix is planning to enter the foundry field. In March of this year, SK Hynix bought MagnaChipSemiconductor's foundry division for USD for 435 million, and obtained its 8-inch foundry production line. And technology, the division will be split up at the end of this year at the earliest. Recently, SK hynix has renamed the business to KeyFoundry and is preparing to attack the foundry market. It is expected that the business will contribute a portion of 8-inch under the integration of SK hynix Foundry capacity.
In fact, the recent second-quarter financial reports of Hua Hong Semiconductor and SMIC also revealed the hot demand for 8-inch wafer foundry.
Hua Hong Semiconductor’s 2020 Q2 performance report shows that the company’s overall capacity utilization rate reached 93.4%, an increase of 11% from the previous quarter. Its Hua Hong Wuxi plant had revenue of US$9.5 million in the second quarter, and its capacity utilization rate reached 38.4%, an increase of 31.4% from the previous quarter. Hua Hong currently has four wafer fabs. According to data, the company's 8-inch (200mm) wafer foundry has a monthly production capacity of 178,000 wafers, and its capacity utilization rate is as high as 100%. The company’s president and executive director, Mr. Tang Junjun, said that driven by the market demand for IGBTs, super junctions, MCUs and CIS, the company’s revenue in the second quarter reached US$225.4 million, achieving double-digit growth from the previous quarter.
SMIC’s financial report for the second quarter of 2020 shows that the company’s current capacity utilization rate remains at a high level, reaching 98.6% in the second quarter, an increase of 0.1% over the previous quarter, while only 91.1% in the same period last year. The monthly production capacity has increased from 476,000 in the previous quarter. The number of tablets has increased to 480,000. It is worth noting that before the end of this year, SMIC’s 8-inch production capacity will increase by 30,000 per month and 12-inch capacity by 20,000 per month.
SMIC stated that demand for power management, radio frequency, low power consumption, wearables, and special storage has been strong since last year. In the second quarter, SMIC’s related wafer revenue increased by 7% from the previous quarter and 25% year-on-year, resulting in overall consumer electronics revenue. The month-on-month growth was 8% and the year-on-year growth was 41%.
Some devices have a gap of 15-20%, 5G mobile phones, automotive electronics, etc. continue to drive full capacity
As can be seen from the above, this wave of 8-inch foundry production capacity is mainly driven by market demand in the PC industry, display driver, storage, power, power management IC and other fields. With full capacity, processors, panels, power management There will also be a large gap in the supply of ICs.
Compal General Manager Weng Zongbin previously stated that due to strong demand and tight upstream 8-inch foundry production capacity, PC shortages in the third quarter are expected to be more serious than in the second quarter, including processors, panels, power management ICs, etc. , The supply gap is about 15-20%, and it is expected that it will be difficult to completely solve it by the end of 2020.
Asus CEO Hu Shubin said that some parts and components have been in short supply since the latter part of the second quarter. The more serious ones are driver ICs, power management ICs and logic ICs. It is expected that the supply of PCs will exceed demand and the shortage of some parts will continue until 2021. The first quarter of the year.
To solve the problem, it is necessary to increase production capacity. However, it will take at least two quarters to convert 12-inch fabs or to expand production capacity by 8 inches. In addition, major manufacturers are expanding 12-inch fabs. Most semiconductor equipment factories have stopped producing 8-inch fabs. Equipment, so if semiconductor companies need to expand 8-inch factories, they may need to buy second-hand equipment.
In addition to the original gap, the improvement of 5G mobile phone specifications and the gradual recovery of the automotive market have led to a substantial increase in the amount of related devices, which will further drive the growth of 8-inch wafer foundry demand.
With the gradual commercial use of 5G mobile phones, the consumption of cameras and power management ICs will also rise sharply. In order to establish safety stocks, smartphone manufacturers will increase the demand for power ICs and fingerprint recognition under the screen. This will promote TSMC, UMC, and the world. The 8-inch wafer foundry capacity of advanced manufacturers continues to be fully loaded.
In addition, analog chip giant Texas Instruments and power device giant Infineon previously stated that with the gradual recovery of the automotive market, the consumption of power devices in electric vehicles has increased significantly. Data shows that the value of power devices in pure electric vehicles has increased by 14 times compared with that of fuel vehicles. Will also drive long-term growth in demand for 8-inch wafers.
summary
The demand is still growing, and the production capacity is fully loaded. It can be seen that only the expansion of production capacity can really solve the current problem. In fact, the current domestic 8-inch and 12-inch expansion are currently under construction. According to the statistics of Industrial Securities, the 8-inch and 12-inch expansion capacity are 405 respectively. , 2670kwpm, it can be foreseen that as the new production line of production capacity is gradually put into production, the problem will also be solved, but it will take time.