Taiwan and South Korea chip factories are fighting a first-class war, and Chinese wafer factories are facing huge pressure!
Not long ago, SMIC, a leading chip company in Chinese mainland, released its performance report for the fourth quarter of 2023 and the full year of 2023.
The data shows that the economic situation in 2023 is not rosy due to weak demand and falling demand, despite an income of 452500 million yuan, a decrease of 8 over the same period last year61%, but the net profit is only 482.3 billion yuan, a decrease of 60 over the same period last year25%。
The decline of 66.5 percent is a staggering number, compared to last year, a three-fifths decline.
Why is this effect happening? Because the production capacity in the market is too small, the production capacity is too low, and other chip factories are fighting the first war, the first profit is naturally low.
In fact, not only SMIC, but even GF Semiconductor and PSMC have also fallen into a bleak situation.
Even Samsung and TSMC will not improve much in 2023, because their production capacity and ** are constantly declining.
In 2024, six fabs in Taiwan and South Korea have already announced price cuts.
The Korean factory refers to Samsung, Samsung has been adjusting the chip since 2023, and in 2024, the price has begun to be reduced, which shows that Samsung's situation is not good, and it is even fighting a ** war.
Among the Taiwanese chip manufacturers, Samsung, TSMC, VIS, and Tower are very competitive, and it is almost impossible to avoid the first war.
TSMC has also begun to reduce prices, and Taiwanese manufacturers have reduced prices in different ranges, but the ranges are between 10% and 20%.
In fact, not only Taiwan and South Korea manufacturers are cutting prices, even SMIC is cutting prices, according to ** reports, the price reduction is about 10%, and Chinese mainland manufacturers Huahong, Jinghe Integration and other manufacturers have also reduced prices, up to 10%.
From this point, it can be seen that the cold winter of the chip industry is not over, and the top ten manufacturers have already started a battle, while other manufacturers are still expanding production capacity.