Wafer foundry prices have experienced strong price increases for one year in a row, enjoying a lot of price increase dividends. However, with the recent slowdown in the demand growth curve, the rising trend has followed a pause. IC design houses have benefited from price increases in the past. Supplementary supplements, but for this year’s outlook, most of them still have uncertain views on the second half of the year, highlighting that the economic direction from the second half to next year is unclear, and the price advantage of IC design houses has also converged simultaneously. Whether the market can continue to enjoy the dividend of price increases in the future, the market highly anticipated.
The industry pointed out that the demand for consumer products has been rapidly converging recently. Although the demand for commercial and e-sports products has maintained a certain degree of heat, compared with large-volume consumer products, there is still a gap in sales. The annual economic trend returned to the previous seasonal normal.
Today, the inventory level of IC design houses is generally higher than that of the same period last year or even the fourth quarter of last year. Various manufacturers are more sensitive to the price of wafers, and the client’s willingness to accept the price seems to be unclear along with the terminal demand. There is also a conservative phenomenon, and therefore IC design houses generally hope to maintain the status quo for wafer supply prices.
The industry believes that as the 12-inch wafer production capacity will be released in large quantities from the second half of the year to next year, the shortage of wafer-side capacity will ease. According to the market, fabs have begun to listen to the needs of various IC designs next year. Earlier in the past, it appeared that in order to increase the utilization rate of new factories, various fabs may start a battle for customers.
Under the expectation that the foundry price may decline, the bargaining power of IC design houses for customers will not be as strong as in the past, and the market may return to the buyer’s market.
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