Find Top SoC Solutions
for AI, Automotive, IoT, Security, Audio & Video...

Rising 8-inch foundry quotes putting pressure on IC designers

May. 22, 2018 – 

Foundry houses raising quotes for 8-inch capacity amid tight supply are creating pressure on IC designers' profit margins in the short term, but in the long run could be a stabilizing factor in terms of profitability deterring downstream clients from asking for unreasonable price reductions, according to industry sources.

Robust chip demand for automotive electronics, IoT and consumer electronics applications has been filling China- and Taiwan-based foundries' 8-inch fab capacities, the sources indicated. Orders for chips including MCUs, analog chips, LCD driver ICs and MOSFETs have been ramping up for these applications.

Foundries including Hua Hong Semiconductor, Semiconductor Manufacturing International (SMIC), Taiwan Semiconductor Manufacturing Company (TSMC), United Microelectronics (UMC) and Vanguard International Semiconductor (VIS) have already seen the visibility of orders for 8-inch capacity extend through the end of 2018, the sources said. The foundries have moved to adjust upward their 8-inch foundry quotes to reflect tight supply, as well as to discourage their clients from double booking, the sources noted.

Click here to read more ...


Partner with us

Visit our new Partnership Portal for more information.

Submit your material

Submit hot news, product or article.

List your Products

Suppliers, list and add your products for free.

More about D&R Privacy Policy

© 2018 Design And Reuse

All Rights Reserved.

No portion of this site may be copied, retransmitted,
reposted, duplicated or otherwise used without the
express written permission of Design And Reuse.