The news is expected to reduce production costs, and Taiwan's driver chip factories are expected to transfer more orders to mainland foundries
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Update time : 2023-08-30 12:38:57
August 28 news, the consumer electronics industry has been sluggish recently, LCD manufacturers are generally losing money, and the OLED industry is more competitive. IT Home reported earlier that the revenue and net profit of driver chip design manufacturers in Taiwan generally declined in the first half of this year.
According to the Taiwan media "Economic Times" report, Taiwan's driver chip factories are still not optimistic about the future market conditions. In order to reduce production costs and improve market competitiveness, relevant driver chip design manufacturers are expected to transfer more orders to the Chinese mainland, thus accelerating the mainland 55nm, 40nm, 28nm HV wafer foundry production capacity, and expanding the advantages of 90nm HV wafer foundry in related foundries. For example, a large number of OLED driver chip manufacturers such as Chiptron North, Yisiwei, Xinxiang Microelectronics, Giddith, Ximicroscope, HiSilicon, Yunyinggu, Xinying Technology, and Weier can benefit from it. According to Taiwan media, SMIC's 150nm HV process foundry is "relatively aggressive," and the price of crystalline 55nm and 90nm HV process foundry is also lower than Taiwan's wafer foundries. Wang Yongpan, a senior analyst at Jiwei Consulting, said that since the second half of the year, the recovery of the downstream consumer market has not yet met expectations. Manufacturers mainly engaged in LCD driver chip design are bound to continue to be under pressure, and the price war will continue. Orders from driver chip design manufacturers in Taiwan in Duntai and other regions may further shift to the mainland, promoting the continuous expansion of mainland wafer foundries, and dominating the global LCD driver chip foundry market. Taiwanese media also believe that due to the transfer of orders, China's mainland driver chip designers will face a more intense market competition environment, and even launch "low-price competition" between each other in order to grab orders, resulting in an industry "involution phenomenon." However, in the long run, as the market share of local driver chips and their foundry will continue to increase, the mainland is likely to become the largest foundry base for mature processes (150nm-40nm) above 28nm HV, dominating the driver chip manufacturing market.
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