Recently, due to the short supply of wafer foundry capacity, including TSMC, liandian, world advanced, and Lijie, all orders in the fourth quarter are full. In the first half of next year, the advanced and mature process capacity has been fully reserved by customers, highlighting the short supply of wafer foundry capacity. In addition, not only is the wafer out of stock delivery extended, the shortage wave has spread to foreign MCU. Industry insiders reported that the products of international MCU manufacturers have been postponed, and the new orders are basically not accepted.
St MCU has been out of stock in the market. St individual MCU model price increased from 10.5 yuan to 17 yuan, and even the price increased five times. CAD, cfdt and CGT, the three main trade unions of St, a large semiconductor factory, have launched strikes in their respective factories. According to industry analysis, the strike will further aggravate the shortage and price increase of MCU.
According to a number of industry sources, St microcontroller, morning and afternoon prices are not the same, a week time price doubled. Moreover, the shortage of ST has lasted for several months. At present, the shortage of St continues, and the market price of MCU has reached the highest point in nearly half a year.
In addition, it is understood that NXP (NXP) MCU also continues to be tight, futures card to more than 18 weeks, recently there are many customers looking for, but most of NXP production capacity is still on the epidemic prevention, the market spot is very rare, the price is also high.
With the arrival of Q4 in the traditional peak season, the terminal increment situation is obvious. As one of the top ten semiconductor chip suppliers in the world, Renesas factory is basically overloaded, and the delivery time is still not eased, especially for MCU. Now the delivery time is basically more than 16 weeks. Recently, the price of MCU in St market soared, which also caused some activity in Renesas spot market.
There are three reasons for the price rise of MCU. First, affected by the Sino US trade war, TSMC, one of ST’s major wafer processing plants, urgently reduced its capacity of two F0 & F1 series wafers and transferred the capacity to 5g related applications with more vigorous demand and better profits, resulting in a sharp reduction in capacity.
Two, novel coronavirus pneumonia is the reason why the prediction of the new crown pneumonia is conservative. Third, in order to meet the needs of a large number of customers, a large number of wafers were shipped in advance, resulting in the shortage of wafers.
Under the background of continuous shortage of foreign MCU, many terminal manufacturers choose to use domestic MCU instead, which also brings some opportunities to domestic MCU manufacturers. However, this wave of out of stock price surge may have spread to domestic MCU.
On November 10, 2020, as the first domestic enterprise to start developing domestic 32-bit MCU chip, Hangshun chip took the lead in issuing the price adjustment notice.
In the notice letter, Hangshun said that due to the tight production capacity of the film casting plant and packaging plant, the price of raw materials rose, and customer orders increased significantly. According to the company’s decision: if the price of MCU series is lower than that of agent system, the price of agent system will be restored. If all agents fail to give FCST in the first half of 2021 (from January 31, 2021 to June 31, 2021), they can not guarantee the supply of goods, but only if they give FCST with advance deposit can they guarantee the supply of goods. EEPROM (24cxx Series), norflash (25qxx Series) and LCD drive series are up by 10% – 20%; LDO (71xx, 75xx, 70xx, 73xx Series) will not be up for the time being and will be implemented on November 10, 2020.
In the face of the shortage and price increase of overseas MCU, Liu Tao, product director of Zhuhai Jihai Semiconductor Co., Ltd., once said, “we will also maintain a stable price at present. In the future, if the price of raw materials rises, we will inform our customers in advance of the time and the rate of increase. But even if the price increase is limited, we will try our best to digest the market fluctuation from the perspective of the original factory and provide a stable price for domestic customers. “
In addition, the ICInsights report shows that the scale of the global MCU market in 2019 was about $16 billion. Due to the influence of COVID-19, the global MCU market is expected to drop to US $14 billion 900 million this year, with a decrease of about 6%. But in the first half of the year, the domestic MCU enterprises basically achieved a positive growth. Industry insiders said that the market share of domestic MCU products is not high, less than 10%. Under the background of continuous shortage and rising prices in foreign markets, domestic MCU companies hope to usher in opportunities.
Editor in charge: Tzh