According to the private disclosure of IC design industry, the recent price decline of Taiwan, China wafer foundry has accumulated about 20%, and there is still room for negotiation in the future.

IC designers further explained that due to the slowdown in semiconductor demand, the pressure on wafer foundries to eliminate inventory has increased greatly; While the IC design industry gradually loosens the lower unit price for the wafer foundry, a wave of price reduction has emerged in the wafer foundry. In particular, after the mature process of Chinese Mainland's wafer factories took the lead in price reduction in July, the price reduction trend also spread to Taiwan, China's wafer foundry, which also focuses on mature process.

In short, the market expects that this wave of semiconductor inventory correction will continue into the first half of next year; Wafer foundries in Taiwan, China, such as UMC, PSWC and VIS, also expressed their views before.

Wang Shi, general manager of UMC, said earlier that due to the continued strong demand from the end market for UMC's differentiated processes, the financial figures in the second quarter were in line with expectations. The capacity utilization rate was 100% full load, and the overall wafer shipment increased by 4.3% compared with the previous quarter. The increase in the average selling price and the favorable exchange rate raised the gross profit margin in the second quarter to 46.5%.

Wang Shi explained that entering the third quarter, UMC's business will remain stable. Although there may be short-term fluctuations in the cooling demand for smartphones, personal computers and consumer electronics, UMC actively cooperates with customers to adjust its product portfolio. After a two-year super cycle, the semiconductor industry is entering an inventory adjustment period.

On the other hand, PSMC mentioned at the legal seminar in July that the gross profit rate in the third quarter would return to a more normal situation due to the decline in capacity utilization due to the decline in market demand; However, PSMC will improve production efficiency, adjust product mix and speed up the finalization of new products.

Source：半导体前沿