Samsung, SK Hynix and other manufacturers plan to reduce the purchase of silicon wafer materials

According to TheElec, Samsung and SK Hynix are planning to reduce purchases of silicon wafers for chip production.

Industry insiders said that since the fourth quarter of 2022, semiconductor manufacturers such as Samsung and SK Hynix have discussed with wafer suppliers on reducing semiconductor production capacity and supply, mainly due to changes in the semiconductor market situation at the end of 2022.

Industry insiders believe that these semiconductor manufacturers have already begun to consider future market changes and have reviewed relevant issues in advance. Usually, the impact period of the semiconductor downstream market on upstream manufacturers is 6-9 months. Considering the severe decline in sales of major semiconductor manufacturers in Q3 in 2022, it can be seen that the market response speed of upstream manufacturers is faster than expected.

Currently, chipmakers are looking to reduce the number of wafers they source even more than usual. Wafer supply deals are long-term, which usually limits chipmakers' adjustments to purchases, but Samsung and SK Hynix have asked for further reductions, the sources said.