Recently, some media reported that TSMC has informed all IC design customers, all of the semiconductor manufacturing process are price, or up to 20%, and with immediate effect. Other providers UMC fab, electric power product, Samsung also announced the news of price hike foundry, the foundry will set off a round of prices surge again.

With the foundry prices, driven foundry chip prices will also follow up, drive chip market rose sharply signs of whether the price will appear? The fourth-quarter drive chip prices will continue to rise it?

Foundry price boom lift, the driving chip prices 10 to 15%

According to Taiwan media reports, recently, TSMC has China Taiwan and other customers notice, the foundry will hike prices, the highest price increases 20%, of which 7 nanometers to more advanced process will hike prices by 10%, more than 16 nm maturation process will hike 10 to 20 percent, carmakers and other customers mature process chip prices will increase about 20%. This will be the biggest ever TSMC's a price adjustment.

Not only TSMC, other fab providers also reported news of price increases. It is said that UMC intends to September this year, in November, increased three times in January next year 22nm, 28nm offer, which entered into force next year may be higher than the price corresponding to the price of TSMC process.

Samsung Electronics will join the foundry prices surge. Previously the company's vice president Suh Byung-hoon in the second quarter earnings conference, said:. "We will make the price of foundry rationalization" recently, according to South Korea Economic Daily reported that Samsung Electronics will officially open the fourth quarter prices and will also be part of the AP smartphone production outsourcing.

Global driver chip wafer capacity is concentrated in South Korea, China Taiwan manufacturers, they foundry wave of price increases will further uplift driven foundry prices. Isaiah research executive has revealed to the collection bin League micro network, TSMC foundry third quarter price increase of at least 10 to 15%, of which a small-size LCD driver IC foundry prices also followed up 10 to 15%; the third quarter, UMC large, small and medium size LCD driver IC foundry prices rose about 10% to 15%; the third quarter of the world's advanced large-size LCD driver IC foundry prices 10 to 15%.

The wave of price surge may foundry for two main reasons. First, the epidemic affected, semiconductor material upstream production and supply are affected, leading to materials needed foundry continued to rise, increasing the cost of the foundry. Hon Hai Group Chairman Liu Yang Wei said, had expected the semiconductor material shortage situation may continue into the second quarter of next year, after a shortage of material situation now seems likely to be extended into the second quarter of next year, mainly depends on the Delta epidemic variables.

Second, the global wafer production capacity, foundries have global expansion, a substantial increase in investment spending, in order to improve profitability by the name of wafers shortage of big price increases. TSMC since the loss of eight inches and 12 inches mature processes share, in the first half of this year grew by 12% and 3% decline, compared with 20 to 30% growth to industry was clearly low. Lu line of the semiconductor industry analysts said, by price, TSMC will make up for last year, with the wrong capital expenditure this year to save 50% of the gross margin.

Demand slowed production release, or drive chip prices were flat Q4

Foundry drive prices have continued to rise, but the downstream application market is not very boom, some types of drive chip supply and demand tension will be eased, foundry prices may not be able to continue to promote the drive chip prices.

Affected by the epidemic factors, supply chain, logistics and market and other market research agencies have recently cut 2021 Consumer Electronics Market Forecast. DRAMeXchange noted that the second half of the season is not busy doubt increasing, again revised down this year's TV shipments to 2.15 million units, the annual reduction of 0.9%. IDC's latest report said that as the supply chain and logistics challenges persist in 2021 worldwide PC shipments are expected to grow 14.2% to reach 347 million units, down from IDC in May forecast growth rate of 18%. Chilean consulting group report, due to the outbreak of the epidemic in India, coupled with the decline in domestic purchasing power, in 2021 the global smart phone market by the beginning of one hundred million forecast of 13.5-13.6 13.2-13.3 million to repair the audience.

As the applications market as expected, driven chip prices stabilized. Union has set Bin told micro-grid, small and medium size TDDI demand is still strong, but there is no further price increases in the coming months might offer stabilization flat.

Large basic driver chip prices are unlikely to continue to rise. Into the second half, the TV market is more sluggish after a game machine manufacturers and panel manufacturers TV panel prices have been declining, but at a high price panel is still enormous cost pressure machine manufacturers, machine manufacturers is not conducive to the second half node promotion. Union has set Bin told micro network, the television market demand stabilized, the stock pulled, brand customer panel, driver chips and other components up the goods will decline, panels offer has fallen, although not yet reacted to the driver chip market, but now it seems the drive chips offer has been difficult to improve.

With the application market slowdown, as well as expansion of wafer production release, large-size driver chip shortage will ease the situation, the lowest order of HD + TDDI tight supply situation in the fourth quarter will begin to slow down. Union has set Bin told micro network, the fourth quarter of large size, small and medium-size driver chip prices may be flat, the future still have to observe the panel needs to assess whether there has been driving chip offer down or reversed.