Taiwan-based semiconductor equipment suppliers including Gudeng Precision Industrial, E&R Engineering, Marketech International, Nova Technology (Novatech) and Taiwan Mask have struck long-term supply agreements with Chinese chipmakers focusing on mature process manufacturing, according to industry sources.
In order to restrict the development of China s advanced semiconductor industry, on top of establishing strict export sanctions, the US has also joined forces with Japan, Taiwan, and the Netherlands to fully block China from obtaining advanced semiconductor technology and equipment. Furthermore, it is expected that US sanctions will only get harsher and more comprehensive. It may force China s semiconductor industry to not only have to work hard to improve its technology but also be stuck long-term with mature processes.
TSMC has begun to formulate pricing strategies for its new overseas wafer fabs. Quotes for advanced chips to be fabricated by its plant in Arizona are estimated to be 20-30% higher than corresponding prices in Taiwan, while mature process chips from its plant in Japan s Kumamoto could be 10-15% more expensive, according to industry sources.
Automotive supply chain players are skeptical if TSMC, Intel and Samsung s pursuit of advanced process technologies and capacity expansions will bring real benefits in the long run to the tight supply of mature-process chips.
China s focus on the development of mature-node process technology for ICs may provide it with a bargaining advantage, according to industry observers.