TSMC, UMC, and Japan Shin-Etsu all rose 10-20%
The supply of foundry capacity is in short supply, the COVID-19 epidemic is heating up, and the shortage of the global semiconductor supply chain is getting worse. Recently, it has been reported in the market that TSMC and UMC, the leading foundry companies, will increase foundry prices by as much as 10-20%; semiconductor materials giant Shin-Etsu Japan also announced a 10-20% price increase.
01:TSMC increases 10%-20%
In anticipation that the chip shortage problem may continue into 2023-2024, the foundry leader TSMC has recently notified all IC design customers that it will increase the foundry price next year. Among them, the price of advanced processes below 12nm is increased by 10%, and the mature process above 12nm is increased by 20%, which will take effect from the first quarter of next year. This move will help TSMC's gross profit margin increase and maintain the 50% mark.
Since the second half of last year, due to the strong demand for chips, the global foundry capacity continues to be in short supply, and the supply exceeds demand. UMC, Power Semiconductor Manufacturing, World Advanced, and other foundries have successively increased their quotations. Among them, UMC and Power Semiconductor Manufacturing have increased their prices. The biggest, even capacity bidding, is expected to increase by 50% this year.
02:UMC will increase its 22/28nm quotation three times
Recently, a source from IC design company revealed that UMC has notified customers that its 28nm and 22nm process manufacturing prices will be increased in September, November, and January 2022. The prices that will take effect next year may be higher than the corresponding processes provided by TSMC. price.
The IC design industry pointed out that the current rise in foundry has not stopped. UMC has previously notified customers that they will increase their quotations in September and that some products will increase their quotations in November. They will maintain the quarter-to-quarter increase plan in January 2022, with an estimated average Of 10%
03:Shin-Etsu Japan announces a 10-20% price increase
On August 24, the global semiconductor material giant Japan Shin-Etsu announced that it will increase the price of all products in Japan and overseas, one of its main products, by 10%-20%, and some products will increase prices by more than 20%. The effective date is October 2021.
As the upstream raw materials continue to rise, the middle and lower reaches follow the trend. If there is a single connection, it will actively follow the increase, and if there is no single connection, it will simply lie flat. On the whole, before the new production capacity is put into production, and the rare shortage of silicon metal, the upstream monomer plants are extremely resilient, and the middle and downstream manufacturers have to persist for a period of time on the road to increase the price of raw materials and search for goods. It is expected that due to tight supply and fierce increase in raw materials, DMC quotations in early September will mostly increase.
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