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Utilization rates at 8-inch fabs decreased

  • Author:Abby
  • Release on :2015-05-12

Capacity utilization rates at 8-inch wafer fabs have fallen at a faster-than-expected pace recently prompting foundry houses to lower their quotes, according to sources at Taiwan-based IC design houses.

LCD driver IC suppliers have cut their foundry orders for the second quarter, while orders for analog ICs, microcontroller (MCU) chips and other consumer electronics ICs have been weaker-than-expected despite the peak season approaching, the sources indicated.

Some 8-inch IC foundries have lowered their quotes to attract more orders, the sources said. Nevertheless, many of their fabless clients remain cautious about placing orders, as replenishment demand after China's May 1 holiday has still been slow, the sources noted.

Orders received by many 8-inch foundries so far in the second quarter have been much lower than those landed in the first quarter, the sources observed.

Among all foundries owning 8-inch fabs, only Taiwan Semiconductor Manufacturing Company (TSMC) is able to maintain its 8-inch fab utilization rate at above 90%, the sources said. TSMC usually transfers 8-inch wafer orders to Vanguard International Semiconductor (VIS) when its supply is tight.