Advanced Process Requirement Inspires Wafer Generation Industry

The latest report of DIGITIMESResearch pointed out that the total inventory amount of major global wafer suppliers has been partially relieved of inventory pressure after adjusting for inventory for two consecutive quarters in the fourth quarter of 2012 and the first quarter of 2013, but in the first half of 2013, Driven by increased visibility and restocking inventory, total inventory of major global wafer suppliers rose again in the second quarter and third quarter. This was due to lower-than-expected shipments of high-end smart phones and slower economic growth in mainland China. It is estimated that some wafer makers will adopt the inventory adjustment strategy again in the fourth quarter.

According to DIGITIMESResearch's expectations, the demand for the wafer foundry industry from the computer application market will decline in 2013, but shipments of portable electronic products such as smart phones will grow significantly, which will in turn drive the demand for advanced process from the communications application market. Not only make up for the adverse impact of the flat or recession of the computer market on the growth of the foundry industry's output value, it may even be enough to drive the growth of the foundry industry in the next few years.

DIGITIMESResearch stated that new production capacity of 28nm and below will be released successively in major foundries. This will lead to the continuous increase in the proportion of advanced manufacturing process revenue, improvement of product mix, and continuous push of average sales unit price. Rising, coupled with the increase in shipments of demand-side terminal products, makes the foundry industry grow faster than the semiconductor industry.