Wednesday, December 29, 2004
Local sources reported that Taiwan Semiconductor Manufacturing Co. (TSMC) and United Microelectronics Corp. (UMC) recently offered lower its wafer's prices due to semiconductor industry slowdown and hoping to attract orders, according to several Taiwanese chip designers.
The reports also said that TSMC is offering price cuts of up to 10% across all process technologies for customers since the company has started this quarter by reducing its foundry services by 20-30% for certain major customers. TSMC offered 10% lower charges to customers placing small orders. But to those releasing really big orders, the discount could be even as big as 20%.
UMC is cutting prices by up to 5%, the sources said. However, some industry watchers said that the wafer's price cut may indirectly from the rival foundry in China, the Semiconductor Manufacturing International Co.'s (SMIC) that recently cut 20% of their wafer prices. Both TSMC and UMC declined to comment on the news.
TSMC and UMC predict their fourth-quarter average selling prices (ASPs) fall below expectations. Foreign foundries such as SMIC and Singapore's Chartered Semiconductor Manufacturing have already issued guidance updates warning of lower ASPs for the fourth quarter.
By: DocMemory
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