According to Taiwanese media reports, the shortage of foundry capacity continues, and major fabs will initiate new measures to increase the price of a wavelength, mainly for the three major U.S. customers that account for more than 30% of their revenue, an increase of about 8% to 12%. It will be effective from January 2022. Since the revenue of the price increase target is very high, the increase is also considerable, which not only helps to ensure that the follow-up orders are worry-free, but also has a very positive help in increasing profits.

At present, the major customers of the US series include major manufacturers such as Supermicro, Qualcomm, Texas Instruments, and Huida, and hold orders from major European manufacturers such as Infineon and STMicroelectronics. In response to the increase in the long-term contract price, it was confirmed yesterday (29) that the long-term contract price of some customers will be adjusted.

In the past year and a half, the housing economy, AI, 5G, etc. have promoted the boom in semiconductors, and the production capacity of foundry has always been in short supply. Although foundry prices have been increased quarterly this year, some long-term contract customers have the foresight. In 2020, the annual contract has been signed to "lock in the price". As the new year is approaching, long-term contract OEM prices will also be increased for the three major US customers.

It is understood that this time, the three major U.S. customers, which account for more than 30% of their revenue, will increase their prices. They will mainly target customers with 12-inch fabs with 28 and 40 nanometer processes. The range is about 8% to 12%, and it is expected to take effect in January 2022. It is emphasized that this time, some customers will indeed sign a new annual long-term contract, and adjust the price on the basis of reflecting the current market conditions.

According to a new research report by Gartner, a market research agency, looking at the entire foundry industry, capital expenditures in the global chip industry have increased significantly in the past two years, but for every US$6 invested, the portion used to produce mature process chips is low At US$1, the production capacity of the foundry mature process exceeds the demand and enjoys the advantage of the seller’s market.

According to the industry, even if the foundry price of the foundry increases every quarter, the production capacity will basically be "completely sold out" by 2022.

On the whole, not only does each quarterly contract and annual long-term contract have room to increase prices, it also supports the mid- and long-term camp sports performance. In addition, the current power management ICs, Netcom chips, automotive ICs, etc. continue to be out of stock, and no correction risk is seen in the short term. In addition to the Fab 12A P6 plant of Nanke's 12-inch plant that will be mass-produced in 2023, the eight major customers have also prepaid funds for cooperation. Expansion of production makes the operating trend quite positive.

In a lawsuit involving many years of litigation with US memory chip manufacturer Micron, it was announced last week that the two parties had reached a global settlement agreement to pay a one-time confidential amount to Micron, and the two parties will jointly create business cooperation opportunities. The industry believes that it should provide Micron with 12-inch related production capacity. The two parties have established a cooperative relationship for the first time, and the settlement amount is far lower than market expectations. With the addition of new customers and no financial impact on the settlement, the operation will be more advanced. Positive development.

It is reported that one of the key conditions for the two parties to reach a settlement is to provide 12-inch 28nm and 40nm production capacity to Micron and Micron related key component suppliers, highlighting that the production capacity of the foundry mature process is in short supply. Expensive" has become a favorable bargaining chip in international lawsuits.

Regarding the details of the settlement fund that the outside world is concerned about, it only stated that the amount cannot be disclosed to the outside world, but it will not affect financial performance. As for the cooperation with Micron, it is said that the cooperation part will be announced if necessary.

Today and tomorrow (December 1) to participate in the foreign investment forums held by Citi Securities and Nomura Securities, the market expects that after the conclusion of the Micron lawsuit, foreign investment will focus more on business operations, and long-term price issues will become a major focus. .