TSMC and UMC making semiconductor industry continues to rise in Q4: Report

The leading Taiwanese firms, TSMC and UMC in the semiconductor industry, showing a sustained increase in the last quarter of this year, says a report. The wafer duo of TSMC (Taiwan Semiconductor Manufacturing Company) (2330) and UMC increased by 10%, up to 20% respectively.

Moving ahead, the power management and driver ICs are still soaring with a possibility of price increase for some products. However, the power management ICs may be out of stock all the way until the second half of next year.

Ups and Downs in Production Capacity:

According to the report, TSMC and UMC’s (United Microelectronics Corporation) production capacity will remain tight for this season as well. Besides, a previous report on this matter reveals that TSMC cloud increase price corresponding to the market and customers.

In this line, the new price list has been activated since August for some customers meanwhile some of them will start from October. This new adjustment results in a 15-20 % increment in the mature process and 10% in the advanced process.

Moving to the UMC, this company also preparing for an increase before the end of the fourth quarter. The new regulation will have an average increase of 10% since November simultaneously increasing some processes by 15%.  With the help of price increases in the semiconductor industry,  the market analyzers forecast that TSMC and UMC’s revenue, gross profit margin, and net profit after tax will continue to rise.

 IC Chips and Design:

The report further reveals that the Taiwanese chip boundaries are rising chip foundries and launching countermeasures. Furthermore, the chip price increase from anonymous IC design firms in the first half has been shown on the packaging and testing of the products.

In addition, July, August, September to November, and December are also expected to keep the same flow. If the customers want express delivery, they have can only adjust prices for the moment. Besides, the makers also are in negotiation with customers.

For instants, TSMC has increased by 20% while the other manufactures are still considering the price increase strategy. The dilemma is to whether to only increase the price for TSMC invested product of all products coming next.

Conclusion:

This reports revelers around the power management IC factories in Taiwan alongside Silicon Power, Mota, Zhixin, Analogue, Tongjia, and Hongguan Electronics from China. The foundries are out of print for the power management chips. At the starting of this year, the customers were rushing for almost every item but now they are only demanding some specific parts.

Besides, Novatek and Tianyu are still ruling the driver IC market. And the present conditions aren’t favorable in the TV market so makers are reducing the price. Still, the driver IC inventory occupies small marketing, so that the price increase is acceptable for the customers.

Adding to this, driver chips such as power management ICs are mostly produced by 8-inch factories. However, their production capacity is tight currently. Thus, only some driver IC quotations are likely to be increase prices at present.

(Via- HuaweiCentral)