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Industry insiders: IC design companies are facing rising foundry costs
According to Digitimes, industry sources said that IC design companies, especially smaller ones, continue to face the pressure of rising OEM costs.
The source said that there was speculation in the chip manufacturing industry. Apple, the largest customer of TSMC, rejected the request of the generation factory to raise prices in 2023, and the price adjustment has not been determined. It is reported that TSMC plans to increase the price of most of its manufacturing processes by about 6% from January next year.
The source added that other major customers of TSMC may follow suit, making the foundry face pressure to revise its pricing strategy for next year.
The source pointed out that for small and medium-sized IC design companies, the bargaining chips are relatively small when negotiating with the OEM, and the cost pressure will still face challenges in the short term.
According to the sources of fabless chip manufacturers, Chinese foundry manufacturers and some Taiwanese manufacturers have "softened" their positions and agreed that prices can be negotiated when supply is relaxed. The source said, however, that major Taiwanese foundry plants, including TSMC and UPS, are still waiting to see if they should stick to the original price increase plan next year.
The source said that due to the sluggish demand for mobile phones, the main customers of Unicom reduced their orders in the second half of 2022. Interconnection provides 14 nm and above process technology for logic and special ICs.
The source said that as IC design companies become more cautious about the demand outlook in 2023, pure generation plants may reduce prices, but it is still uncertain when the adjustment will take effect.
The source said that there was speculation in the chip manufacturing industry. Apple, the largest customer of TSMC, rejected the request of the generation factory to raise prices in 2023, and the price adjustment has not been determined. It is reported that TSMC plans to increase the price of most of its manufacturing processes by about 6% from January next year.
The source added that other major customers of TSMC may follow suit, making the foundry face pressure to revise its pricing strategy for next year.
The source pointed out that for small and medium-sized IC design companies, the bargaining chips are relatively small when negotiating with the OEM, and the cost pressure will still face challenges in the short term.
According to the sources of fabless chip manufacturers, Chinese foundry manufacturers and some Taiwanese manufacturers have "softened" their positions and agreed that prices can be negotiated when supply is relaxed. The source said, however, that major Taiwanese foundry plants, including TSMC and UPS, are still waiting to see if they should stick to the original price increase plan next year.
The source said that due to the sluggish demand for mobile phones, the main customers of Unicom reduced their orders in the second half of 2022. Interconnection provides 14 nm and above process technology for logic and special ICs.
The source said that as IC design companies become more cautious about the demand outlook in 2023, pure generation plants may reduce prices, but it is still uncertain when the adjustment will take effect.