Both memory and system semiconductor
This year, semiconductor prices will rise in the first half. Production capacity (capa) is insufficient compared to expected demand. Some companies have already announced an increase in semiconductor prices.
Taiwan TSMC, the No. 1 foundry industry, recently abolished its price-cutting policy (up to 3%) for its major customers. It is estimated to be due to excessive demand. TSMC currently has a year’s worth of orders.
The same goes for other foundry companies. The US Global Foundry’s utilization rate is said to be close to 100%. It is said that the situation of Samsung Electronics is not very different.
Taiwan United Microelectronics (UMC) and Vanguard International Semiconductor (VIS), which are 200mm foundry companies, also raised their chip production costs. DB HiTek decided to increase its unit price by up to 20% starting this year. Currently, DB HiTek’s factory is fully operational.
The shortage of the foundry’s supply leads to higher prices for memory and system semiconductors. Market research firm Trend Force predicted that the price of solid state drive (SSD) controller chips will increase by up to 20% this year. This is because the controller chip maker could not keep up with SSD demand. It is analyzed that the lack of production capacity in the foundry industry such as Taiwan TSMC and UMC has also affected the production of controller chips.
The increase in the price of the controller chip leads to an increase in the price of internal memory such as embedded multimedia card (eMMC) and universal flash storage (UFS). The price of embedded Maltimedia Card (eMMC) solutions is expected to increase by up to 5% in the first quarter of this year.
DRAM fixed transaction prices are also preparing to rebound. Spot prices, which act as a leading indicator for fixed prices, are rising. In December of last year, the spot price of DRAM was 3.46 dollars, up 30% from the previous month. Trend Force predicted that “D-RAM prices in the first quarter of this year will increase by an additional 5% from the fourth quarter of last year.”
The prices of power semiconductors (PMIC) and display driving chips (DDI) produced in 8-inch foundries are also rising. The US AOS announced that it will increase the price of power semiconductors (PMIC) by 20% from the 1st of this month. The company explained that Corona 19 and changes in the global PMIC supply chain resulted in price hikes and extended lead times.
Taiwanese LCD driver IC makers such as Novatech announced that they will increase the price of touch display driving chip (TDDI) and DDI chip in the first quarter of this year. According to Taiwan’s Digi Times, Novatech has already completed consultations with customers.
China Goodix also announced that it will increase the price of the GT9 series touch chip by 30% from the 1st of this month. Taiwan Global Wafers, a wafer manufacturer, is expected to raise the spot price of silicon wafers. Doris Hsu, chairman of Global Wafers, said, “The company is currently running 12-inch, 8-inch, and 6-inch silicon wafer production lines to a fully operational level,” and said the reason for the price increase.
An industry insider predicted that “the news of semiconductor price hikes will continue”, saying, “Recently, signs of short supply of parts have been lit up everywhere in the semiconductor supply chain.”
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