23 Nov 2020 -

8-inch wafer ICs in short supply as foundry revenue leaps 23.8% YoY

semiconductor manufacturing

Global foundry revenue is projected to rise 23.8% YoY in 2020, the highest percentage seen for 10 years, according to tech industry research from TrendForce.

The bullish semiconductor market driven by WFH, distance learning, 5G, and strong component demand from telecom build-outs is “defying the economic headwinds” and leaving many 8-inch wafer in short supply.

“Notably, 8-inch wafer capacity has been in severe shortage since 2H19, as almost no suppliers still currently produce 8-inch semiconductor equipment, meaning the price for such equipment has now skyrocketed. Moreover, since 8-inch wafer prices are relatively low in comparison to 12-inch wafer prices, foundries generally find it cost-ineffective to expand their 8-inch capacities,” reports TrendForce.

“However, as it is significantly more cost-effective to manufacture products such as PMIC (Power management ICs) and LDDI (large display driver ICs) in 8-inch fabs, foundries may deem it unnecessary to transition to 12-inch fabs or even advanced nodes for these products.

“Demand for PMICs, used in smartphones and base stations, has undergone an exponential growth with the arrival of the 5G era, further exacerbating the existing tight supply of 8-inch wafer capacity. Therefore, although manufacturing operations for some products may gradually transition from 8-inch fabs to 12-inch fabs, the shortage of 8-inch wafer capacities is unlikely to be alleviated in the short run.”

To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than 27 years of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.

Either through the hundreds of manufacturers we purchase directly from, or the international network of component supply-partners offering full product traceability, Astute Safe-Supply, run by sourcing experts and offers a deeper insight into the global components markets.

With real-time access to the latest listings and prices cultivated through several decades of close supplier partnerships, we are able to spot price disparities and leverage product price variances to deliver cost-effective solutions to customers, whilst ensuring a quality, risk-free supply.

For more help with looking at supply chain options, contact Astute Electronics here

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