In the case of severe capacity constraints, it is reasonable to increase the price of urgent orders or additional orders by a certain amount.
On August 9th, the supply of foundry capacity will continue to exceed demand until 2022. News about price increases continues. Recently, the industry has again reported that TSMC will adjust the price of foundry foundry for mature processes above 16 nanometers from August. . TSMC said it does not comment on any market rumors about price increases. However, most IC design companies pointed out that TSMC’s mature process capacity has been booked out in the second half of the year, and the price of confirmed foundry orders has not changed. As for urgent orders or additional orders, the price is inherently higher than normal orders. Treated as a price increase.
Since the beginning of this year, news of wafer foundry prices has been frequently reported. UMC has begun to increase wafer shipment prices quarterly in the second quarter, with a quarterly increase of about 10%. Power Semiconductor Manufacturing will increase its prices in the first half of the year. In the first half of the year, the price of wafers will be increased by 10% across the board, and will be increased again in the second half of the year. As for the world’s advanced and SMIC, it has also revealed that it has raised prices. And recently Samsung foundry also reported price increases, and it includes advanced manufacturing processes such as 7nm and 5nm.
Mature process focus
TSMC’s foundry prices have remained unchanged this year, but as other competitors in the same industry continue to increase prices, the topic of TSMC’s price increase has once again become one of the market’s focus. Recently, it has been reported from the market that TSMC will adjust the foundry prices of mature processes above 16nm from August, which will be fine-tuned according to different customers and processes, but the negotiated order prices will remain unchanged, mainly for the increase in volume. , The increase is about 10-15%.
However, most IC design companies said that TSMC’s mature process capacity in the second half of the year was booked out by customers. Because the orders were finalized half a year ago, the confirmed foundry order prices remained unchanged. As for urgent orders Or the foundry price of the increased order part would have been higher than the normal order price. In the case of severe capacity constraints, it is reasonable to increase the price of urgent orders or additional orders by a certain amount.
The industry keeps rising
The industry explained that the price increase of wafer foundries including UMC, Power Semiconductor Manufacturing Co., Ltd., and SMIC is aimed at raising the price of wafers or wafer shipments this year. Foundries of the same process and volume The order price has increased compared with the price when the last order was placed, and this is considered a price increase. However, TSMC’s order price for this year is the same as the price when the last order was placed, so it did not have the same price increase as its peers.
TSMC has already stated its price strategy for 2022 in March this year. TSMC President Wei Zhejia pointed out in an open letter to customers that due to the extreme shortage of production capacity and the consideration of TSMC’s large-scale investment in new plants and production capacity, the annual routine will be cancelled in 2022. Good price discounts.
The cancellation of the discount by TSMC is regarded by the industry as a “disguised price increase,” but customers think it is very reasonable and acceptable.