According to the agency survey, the foundry surfaced a wave of cut orders, the first wave of order amendments from the large size Driver IC and TDDI, the two mainstream process 0.1Xμm and 55nm, respectively. CIS and part of the MCU, SoC cut single wave has surfaced, although still mainly consumer applications, but the foundry has been successively unbearable for customers to significantly cut orders, capacity utilization rate officially slipped.

Observing the second half of the year, the agency said that in addition to Driver IC demand continues to downward revision has not seen an improvement, smart phones, PCs, TV-related SoC, CIS and PMIC and other peripheral components also began to inventory adjustment, began to wafer foundry down the investment plan, cutting single phenomenon occurred simultaneously in the eight-inch and 12-inch plant, the process contains 0.1Xμm, 90/55nm, 40/ 28nm, even advanced process 7/6nm is also difficult to avoid.

Capacity utilization is loosening, resources are effectively allocated, long and short material dilemma relief

According to institutional research, eight-inch wafer process node (including 0.35-0.11μm) capacity utilization rate is afraid of the most obvious decline, the process products are mainly Driver IC, CIS and Power-related chips (PMIC, Power discrete, etc.), of which Driver IC by the TV, PC and other demand freeze direct impact, the pitch down the magnitude of The most drastic downward revision. Meanwhile, the supply of PMIC, which was still tight in the first half of this year, gradually tended to balance after capacity reallocation.

However, in the second half of the year, under the condition that the demand side is still continuously revised downward, consumer PMIC and CIS also began to appear inventory adjustment action, although there are still PMIC and power discrete demand support from server, automotive, industrial control, etc., it is still difficult to fully compensate for the Driver IC and consumer PMIC, CIS cut single gap, resulting in some eight-inch factory capacity utilization began to Down, the agency believes that the second half of the overall eight-inch plant capacity utilization will fall roughly in the 90 to 95%, which part of the manufacturing of consumer applications accounted for a relatively high number of wafer fabs, may have to face 90% of the production capacity defense battle.

The same situation also occurs in the twelve-inch mature process, but because the twelve-inch products are more diversified, and the production cycle generally requires at least one quarter, coupled with some product specifications upgrade, the process into the trend has not stopped due to short-term overall economic fluctuations, so the overall capacity utilization rate can still maintain a high crop level of 95%, compared with the crop rate of the past two years often break 100, the production line operation gradually The production line operation is gradually becoming healthy and stable, and the resource allocation is gradually balanced.

In terms of advanced processes, the company mainly produces CPU, GPU, ASIC, 5G AP, FPGA, AI accelerator, etc. The end-use applications are still mainly smartphones and high performance computing (HPC), although the smartphone market is sluggish and the 5G AP has also seen a downward revision of orders, the HPC-related products still maintain a stable pulling power, coupled with a With a number of new product releases planned, the agency believes that 7/6nm capacity utilization will decline slightly to 95-99% in the second half of the year due to product mix conversion, while 5/4nm will remain at near full capacity driven by a number of new products.

Looking ahead to 2023, the agency believes that after nearly two and a half years of chip shortage wave, the cooling of consumer products although in the short term to loosen the foundry capacity utilization, but in the past suffering from a piece of wafer hard to find applications to obtain the reallocation of resources at this time, related applications such as 5G smart phones and electric vehicles penetration rate increased year by year, 5G base stations, countries security measures automation and other infrastructure, the Cloud services such as server demand for stocking momentum, will continue to support the foundry capacity utilization rate of roughly maintained at more than 90%, but some of the production of mainly consumer products industry is afraid to face capacity utilization rate fell below 90% of the situation, it is necessary to rely on the foundry's own product application of diversified layout and resource allocation, in order to survive the global high inflation brought about by the parts inventory adjustment crisis. .