Fang Lue, chairman of Wafer Foundry World Advanced, said that the industry's prosperity "cold first and then warmed up", and how warm it will be is uncertain, mainly due to the unpredictable environment variables.

(Photo by reporter Hong Youfang)

[Reporter Hong Youfang/Hsinchu Report] Fang Lue, chairman of the 8-inch wafer foundry World Advanced (5347), pointed out today (6) that the inventory adjustment in the supply chain continues. Taking a conservative view of the first half of the year and looking forward to the industrial boom in 2023, he believes that the industrial boom will "cold first and then warm up." It is uncertain how warm it will be, mainly due to the unpredictable environment variables.

Fang Lue pointed out that the semiconductor market was overheated last year, and the supply chain desperately pulled inventory, "but it is impossible to set off fireworks every day." Customers have been alert since the middle of last year and have successively adjusted inventory. It is expected that inventory adjustment and industrial demand will weaken in the first half of this year. Two factors, the economy is relatively sluggish, and the first half of the year is determined to be in recession compared with the same period last year. The world's advanced and conservative view.

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Fanglue estimates that most of the customer inventory in the second quarter is expected to be close to the normal level, but the inventory adjustment trend does not mean that the second half of the year will definitely be good, and it is necessary to observe the impact of changes in the overall political and economic environment on the end market's buying sentiment.

Judging from the recent downward revisions of economic forecasts by international organizations, this year will not be good. Inflation, interest rate hikes, the impact of the Ukrainian-Russian war on oil prices, and China’s economic recovery after the unblocking are all uncertain variables.

According to Fang Lue, the current economic situation is expected to pick up in the second half of the year. It is generally believed that the second half of the year will be better than the first half of the year, and relative demand will pick up. However, the strength of demand remains to be seen. Overall, this year will show a trend of first cold and then warm , As for how warm it is, it remains to be seen due to many external uncertainties.

China’s reduction in subsidies for the semiconductor industry is rumored to be beneficial to mature foundries? Fanglue said that China’s subsidies for semiconductors will continue to exist, and the strength is not an absolute issue. Technology, services and competitiveness are the key The essential.

In response to market conditions, World Advanced’s capital expenditure this year will be significantly lower than last year. The five expanded factories are expected to open in the second half of the year, with a monthly production capacity of 15,000 pieces. The current order visibility is about 3 months.

In terms of order transfer, there are both Europe, America and China. Chinese customers began to inquire about order transfer as early as 2 years ago, and more recently, the transfer order has indeed occurred.

Recently, an American power supply-related IC customer also signed a long-term foundry agreement with World Advanced. It is estimated that the certification will take one year, and the operation will be fermented next year.

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