News & Events

Fabless IC designers under price hike pressure

Foundry houses have been raising their service quotes, but fabless IC designers are finding it more and more difficult to pass on the increases in production costs to their downstream clients who are seeing demand from the end market slowing down. In the foundry sector, Samsung is keen to dethrone TSMC, but the Korean chip giant reportedly is experiencing bottlenecks on its way to commercializing its 3nm processes. Meanwhile, ABF substrate makers are seeing more of their clients asking to sign long-term supply contracts.

IC design houses see customers become reluctant to accept higher prices: Taiwan-based IC design houses are negotiating with their clients about further price hikes for their chip products to reflect rising manufacturing costs, but have found them particularly notebook and FPD customers become reluctant to accept higher prices, according to industry sources.

Samsung still faces hurdles in 3nm GAA process development: Samsung Electronics is still facing technology hurdles, such as leakage and other crucial issues, in the development of 3nm gate-all-around (GAA) process technology, according to industry sources. Samsung's 3nm GAA process could also be less competitive than TSMC's 3nm FinFET technology in terms of performance and costs, the sources said.

ABF substrate suppliers see more customers seek long-term deals: ABF substrate makers have seen more of their customers eager to strike long-term agreements to ensure sufficient supplies through 2025 and even beyond, as tight supply is expected to persist in the next few years with capacity expansions still outpaced by demand growth, according to ndustry sources.