Semiconductor Analysis
The production capacity of the global semiconductor supply chain continues to be in short supply. Wang Shi, co-general manager of UMC, a major wafer foundry, said in an exclusive interview with the Business Times that the demand for semiconductors continues to be strong. exceed the rate of increase in production capacity.
This imbalance between supply and demand will lead to structural changes in the semiconductors market. The structural problem that the growth rate of demand is greater than the increase in production capacity is difficult to solve. The shortage of semiconductor production capacity may continue until 2023.
COVID-19 has impacted the global economy, but the semiconductor market has grown significantly due to the acceleration of digital transformation driven by the epidemic, and the strong demand momentum will continue until 2021, and semiconductor production capacity will be in short supply across the board.
Wang Shi pointed out that the reasons for the short supply of production capacity are as follows:
The silicon content of mobile phones continues to rise.
Less travel leads to higher electronics sales.
The trend of electric vehicles continues to develop, and the number of chips used in each vehicle has increased significantly, resulting in a severe shortage of automotive chips.
Semiconductor Demand Surges
The International Semiconductor and Materials Association stated in the latest quarterly report of the silicon wafer industry that the global silicon wafer shipments in the second quarter of this year surpassed the historical record set in the first quarter of this year, with a year-on-year increase of 1%. reached 3704 million square inches. Silicon wafer shipments in the second quarter were up 5% from 3,534 million square inches in the same period last year.
Here is a popular science about what silicon wafers are. Silicon wafers are the basic materials for most semiconductors, and semiconductors are an important part of computers, electronic equipment, and telecommunication equipment. Highly engineered wafers up to 12 inches in diameter can be used as the substrate material for most semiconductor devices or chips.
“The semiconductor market drives shipments and demand for silicon wafers. As with other wafer fabrication materials, inflation drives up prices for silicon. Facing the With continued expansion of semiconductor fabs, wafer supply remains constrained.”
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