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IC Insights: The fab may set off a wave of shutdowns
The COVID-19 epidemic is raging and the world is entering a recession. Will wafer fabs set off a wave of shutdowns? According to a survey conducted by IC Insights, a semiconductor analysis and research organization, more and more semiconductor players are using technologies below 20 nanometers. This year and next year include: New Japan Wireless, Renesas Electronics and Adeno Semiconductors will gradually close their old wafer fab production capacity. More old wafer fabs are expected to close in the next few years. In particular, under the influence of this epidemic, the semiconductor industry is accelerating its manufacturing outsourcing or fabless business model. Wafer leaders such as TSMC, World Advanced and UMC will be given priority to benefit from the foundry, and outsource production orders. .
The COVID-19 epidemic severely damped the global economy. IC Insights compared the impact of the previous financial tsunami on the semiconductor industry in 2008. At that time, global semiconductor factories all began to review the operating costs and efficiency of wafer fabs, and set off a wave of factory closures.
IC Insights points out that since 2009, as many as 100 IC fabs have been closed or remodeled. As semiconductor manufacturers integrate or transition to fab-lite or less fab business models, the IC industry Has been cutting its old capacity.
Especially in the past, semiconductor mergers and acquisitions have surged. More and more semiconductor companies use 20-nanometer process technology to produce chips, and gradually inefficient wafer fab capacity, especially wafer fabs above 200 microns, of which Japan and North America account for the majority , Accounting for about 70% of the overall.
It is quite certain that two of Renesas Electronics, Nippon Radio (NJR) and Analog Devices (Analog Devices) wafer fabs, will be closed from 2020 to 2021.
IC Insights expects that the cost of building a new fab is getting higher and higher, more fabs will be closed in the next few years, and more and more semiconductor manufacturers will move towards fabless or partial manufacturing outsourcing.
The COVID-19 epidemic severely damped the global economy. IC Insights compared the impact of the previous financial tsunami on the semiconductor industry in 2008. At that time, global semiconductor factories all began to review the operating costs and efficiency of wafer fabs, and set off a wave of factory closures.
IC Insights points out that since 2009, as many as 100 IC fabs have been closed or remodeled. As semiconductor manufacturers integrate or transition to fab-lite or less fab business models, the IC industry Has been cutting its old capacity.
Especially in the past, semiconductor mergers and acquisitions have surged. More and more semiconductor companies use 20-nanometer process technology to produce chips, and gradually inefficient wafer fab capacity, especially wafer fabs above 200 microns, of which Japan and North America account for the majority , Accounting for about 70% of the overall.
It is quite certain that two of Renesas Electronics, Nippon Radio (NJR) and Analog Devices (Analog Devices) wafer fabs, will be closed from 2020 to 2021.
IC Insights expects that the cost of building a new fab is getting higher and higher, more fabs will be closed in the next few years, and more and more semiconductor manufacturers will move towards fabless or partial manufacturing outsourcing.