Highlights of the day: Pricing stress mounting from semiconductor provide chain
DIGITIMES workers
Suppliers in virtually all sectors within the semiconductor ecosystem are elevating costs to replicate tight capability amid sturdy demand. But there have been issues that the upward pricing pattern could ship end-device costs up, deterring customers. For chip distributors, equivalent to driver IC specialist Novatek, value hikes are anticipated to drive up their revenus and earnings in first-quarter 2021. But for China-based foundry home SMIC, which is on a US export blacklist, pricing could also be a lesser concern than availability. SMIC could run out of chemical uncooked supplies wanted for chip fabrication.
Rising upstream prices could dampen machine demand progress in 1H21: Rising manufacturing and uncooked materials prices could convey variables to end-market demand within the first half of 2021, as machine distributors and producers want to cross the elevated prices onto purchasers, in line with business sources.
Novatek to guide new wave of value hikes for DDI, TDDI chips: Taiwan’s main show driver IC (DDI) vendor Novatek Microelectronics is anticipated to take the result in elevate its quotes quickly to replicate elevated foundry prices, which can ship its revenues, gross margins and web earnings hitting new highs in first-quarter 2021, in line with business sources.
SMIC sees US ban hit provide of chemical uncooked supplies and consumables: The US commerce ban towards China-based SMIC has restricted the pure-play foundry’s functionality of acquiring semiconductor tools for its course of know-how developments. Nevertheless, a extra important problem dealing with SMIC is inadequate provides of chemical uncooked supplies and a few essential consumables to be used in chip fabrication, in line with sources at Taiwan’s fabless chipmakers.
