For the first time in many years, TSMC's wafer foundry quotation has been comprehensively revised

For the first time in many years, TSMC's wafer foundry quotation has been comprehensively revised

According to a report from Fast Technology, the demand is insufficient, and TSMC's consistently strong wafer foundry prices cannot sustain it. Even advanced processes are idle, forcing TSMC to make concessions in its future production quotations. According to relevant reports, TSMC has recently negotiated with customers that as long as the production volume meets the regulations, there will be a discount on the quotation. This is the first time in several years that TSMC has made a price concession.

Due to its superior production capacity and technology, TSMC has always been absolutely dominant in chip foundry bargaining. If it does not agree, it will not accept orders, even Apple is very afraid. Nowadays, unlike in the past, TSMC rarely adjusts its pricing strategy, but this also means that the situation in the chip industry may not improve for the time being, at least until 2024.

2. Institution: The semiconductor industry is expected to resume in 2024

According to the Semiconductor Manufacturing Monitoring report jointly released by the International Semiconductor Industry Association (SEMI) and TechInsights, as the continuous decline in IC sales begins to slow down, the global semiconductor industry seems to be approaching the end of the decline cycle and is expected to begin recovery in 2024.

In the third quarter of this year, electronic product sales are expected to achieve a 10% month on month growth, while memory sales are expected to achieve double-digit growth for the first time since the third quarter of last year. With the gradual recovery of demand, the sales of logic IC are expected to remain stable and improve.

IDM and fabless factories will continue to be affected by destocking, and capacity utilization will be much lower than in the first half of the year. Market indicators show that the semiconductor industry bottomed out at the end of the first half of 2023 and began to recover, laying the foundation for sustained growth in 2024. It is expected that all segmented markets will achieve growth in 2024, and electronic product sales will exceed the peak in 2022.