No price reduction at the wafer factory

Although the global semiconductor market is chilly, the Taiwanese wafer OEMs are still firm about the price, and the price rise of TSMC, a leading manufacturer, is almost certain to be adjusted, which makes the current situation of sandwich biscuits that IC designers have been killed by upstream and downstream companies hard to explain.
 

The pressure of terminal customers to cut prices comes one after another, but they rarely get a positive response when they want to pass on costs upwards. The gross profit rate in the next few quarters, even if the exchange rate factor can support it a little, may not look very good. However, the industry is not overly pessimistic, and believes that from 2023, the prices of upstream supply chains, including wafers and closed beta, will start to ease.
 

At present, in the second half of 2022, although many businesses have cut orders or delayed the purchase of goods from upstream, most of the orders were negotiated six months to one year ago, and the wafer OEMs are generally reluctant to adjust prices at this stage, which will really put a little pressure on IC designers.
 

But in the current market situation, it is not so surprising that the upstream industry does not adjust the price. Just as TongIC Design saw that the demand for orders was really weak in the market, and the price reduction could not bring more orders, foundry also took the same consideration, so the real price will start to loosen, and it may have a better chance in 2023.