The United States’ sanctions on SMIC’s SMIC are expected to be loosened. Previously benefited from the Sino-US trade war, SMIC’s production capacity was limited, and Macronix and Winbond, which have the concept of transfer orders, would benefit from the overall NOR FLASH. The supply is expected to open again, and the overall market supply and demand situation may change again? The supply chain pointed out that, for this year, there is no change in actual customer demand at present, and this year's operating outlook will not be affected.

But in the medium term, if it is true that SMIC's capacity can be re-opened or transferred back to NOR FLASH, the industry believes that it will have an impact on the low-end foundry and NOR FLASH capacity supply, but it may take 1 to 2 years.

Regarding the overall market conditions of NOR FLASH this year, Macronix and Winbond have released their legal talks. The market demand is optimistic, and the demand side is far greater than the level at which the supply can be delivered. We are optimistic that this market condition is expected to continue into the second half of the year, and More optimistically, NOR FLASH will be out of stock in the short term, especially in the automotive and industrial applications that require high quality. It is estimated that storage prices will rise steadily.

Analysis of SMIC’s impact on the NOR FLASH industry is mainly that SMIC is an innovative foundry for NOR FLASH manufacturer Zhaoyi. If SMIC’s capacity is limited, it will directly affect NOR FLASH capacity. On the other hand, due to the foundry market The demand is fierce, so SMIC has also transferred its limited production capacity to foundry, which is even more crowded out to the overall NOR FLASH market supply. With the market supply and demand turning healthier, the price of NOR FLASH will rise.

It is estimated that the global supply of NOR FLASH only produces about 70,000 to 80,000 wafers per month. Therefore, due to the Sino-US trade war, SMIC’s production capacity is limited, and the supply of domestic NOR FLASH manufacturers in China is also limited, and NOR FLASH As long as the industry's production capacity affects about 5,000 pieces, there is actually a big gap in the overall industry.

It is estimated that Zhaoyi Innovation NOR FLASH, a competitor of NOR FLASH, had previously invested about 8,000 to 10,000 pieces in SMIC, accounting for about 10% of the global production capacity. Therefore, the Sino-US trade war restricted SMIC’s production capacity and increased the production capacity of NOR FLASH. There is also depression.

The supply chain pointed out that there is no change in NOR FLASH customers this year, and the performance this year is still as expected. Moreover, the Chinese wafer foundry transfers production capacity to non-NOR FLASH industries. After the production capacity is usually changed, it will not be transferred back immediately. The impact is estimated within one year. not very big.