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IC design houses brace for weaker profits

IC design houses are caught between rising foundry costs and weakening end-market demand. The IC designers' sales and profits for foruth-quarter 2021 are coming under pressure. And PSMC is yet another foundry house that will raise its quotes by 10% in fourth-quarter 2021. In China, foundry house SMIC is steppingup efforts expanding it fab capacity.

IC design houses to see sales and profits eroded by rising foundry costs: IC design houses will likely see their sales and profits eroded by rising foundry costs later this year, as their downstream customers are increasingly reluctant to accept higher prices, according to industry sources.

PSMC to raise foundry quotes by about 10% in 4Q21: Pure-play foundry Powerchip Semiconductor Manufacturing (PSMC) plans to initiate a further price hike of about 10% mainly for its logic IC process manufacturing, with the new pricing to be effective starting the fourth quarter, according to industry sources.

SMIC to invest US$8.8 billion to build new fab in Shanghai: China-based Semiconductor Manufacturing International (SMIC) has disclosed it has struck a deal with the administrative committee of the Lingang Free Trade Zone (FTZ) under which the pure-play foundry will invest US$8.87 billion to build a wafer fab in the FTZ located in the Pudong District of Shanghai.

By DIGITIMES

Link:https://www.digitimes.com/news/a20210906VL203.html?mod=3&q=IC

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