Bookmark and Share


The world’s two largest contract semiconductor manufacturers are rumored to start increasing prices for their products starting next month. The move has potential to affect financial results of the firms’ largest clients, such as ATI Technologies, Broadcom, NVIDIA Corporation, Texas Instruments (TI) and Xilinx.

Taiwan Semiconductor Manufacturing Company and United Microelectronics Corporation plan to again raise their foundry prices for 0.25-, 0.18- and some of their 0.15-micron process technologies in the second quarter, according to an article at DigiTimes web-site. This is expected to be the second price increase by TMSC and UMC since late 2003, when both chipmakers bolstered wafer costs for their smaller customers. This time large IC design houses will be asked to pay more for wafers.

TSMC and UMC have not announced the actual degree of the price increase, but the source estimated that the increase would be within 10%. TSMC targets its ASPs for 0.18 micron wafers to be in the range of $1000, UMC’s goal is $800-$850. Rising demand for mature processes has eased off the price competition. For instance, Singapore’s Chartered Semiconductor said it expected average selling prices to go up 4-8% in the first quarter and its utilization rates would rise to 81%, DigiTimes claims.

0.25 micron, 0.18 micron and 0.15 micron process technologies are used to build mainstream and entry-level processors for companies like ATI Technologies, Broadcom, NVIDIA Corporation, Texas Instruments (TI) and Xilinx. Even though ATI, NVIDIA and some others aim to build all their volume products using 0.13 micron fabrication processes, at this point 0.15 micron technology is used for chips that are offered for mainstream and low-end hardware that account for a substantial part of the market.

The outcome of price changes at TSMC and UMC will affect fabless semiconductor companies sometime in the second or the third quarter. UMC is said to perform the price increase in April, TSMC had not decided about the timeframes yet, according to the report.


Comments currently: 0

Add your Comment

Related news

Latest News

Monday, April 14, 2014

8:23 am | Microsoft Vows to Release Xbox 360 Emulator for Xbox One. Microsoft Xbox One May Gain Compatibility with Xbox 360 Games

Tuesday, April 1, 2014

10:39 am | Microsoft Reveals Kinect for Windows v2 Hardware. Launch of New Kinect for Windows Approaches

Tuesday, March 25, 2014

1:57 pm | Facebook to Acquire Virtual Reality Pioneer, Oculus VR. Facebook Considers Virtual Reality as Next-Gen Social Platform

1:35 pm | Intel Acquires Maker of Wearable Computing Devices. Basis Science Becomes Fully-Owned Subsidiary of Intel

Monday, March 24, 2014

10:53 pm | Global UHD TV Shipments Total 1.6 Million Units in 2013 – Analysts. China Ahead of the Whole World with 4K TV Adoption

10:40 pm | Crytek to Adopt AMD Mantle Mantle API for CryEngine. Leading Game Developer Adopts AMD Mantle

9:08 pm | Microsoft Unleashes DirectX 12: One API for PCs, Mobile Gadgets and Xbox One. Microsoft Promises Increased Performance, New Features with DirectX 12

3:33 pm | PowerVR Wizard: Imagination Reveals World’s First Ray-Tracing GPU IP for Mobile Devices. Imagination Technologies Brings Ray-Tracing, Hybrid Rendering Modes to Smartphones and Tablets

2:00 pm | Nokia Now Expects to Close Deal with Microsoft in Q2. Sale of Nokia’s Division to Close Next Month