IC price trend: increasing downward pressure
Despite the increase in demand due to the impact of the new crown epidemic, the upstream of the semiconductor industry has bucked the trend. But IC design firms are under increasing pressure to cut their offers as rising political and economic risks stemming from the war are eroding end demand.
IC designers can only struggle to prevent their business performance from falling in 2022, sources said, as their optimism for robust 5G and AIoT adoption earlier this year dimmed due to the Russia-Ukraine war and a surge in COVID-19 infections in China Say.
Fabless chipmakers have managed to secure long-term foundry capacity support, but they have been unable to secure similar shipment commitments from all of their downstream customers, with downward pressure on their offers as demand weakens, the sources said.
If the current market downturn becomes a long-term trend, IC design companies will have a hard time finding an outlet for shipments in the next few years, as they are heavily supported by foundries with new capacity coming online, the sources pointed out.
Lead times for Wi-Fi core chips, which are currently under severe crunch, are expected to return to normal levels in the second half of the year as more foundry capacity becomes available amid a sharp drop in demand in other chip areas, the sources said. as a mobile AP.
Major handset AP suppliers MediaTek and Qualcomm are expected to start a price war in the second quarter to stimulate sales to handset suppliers, the sources said. The source goes on to say that currently, their flagship mobile SoCs are priced around $120 per unit, while mid-to-high-end APs are priced at $60-70 per unit, and it remains to be seen if and how prices will be cut.
Meanwhile, panel prices are expected to fall further in the second quarter, with suppliers of display panels used in mobile phones and other consumer applications reportedly asking display driver IC (DDI) makers to cut prices, sources said, adding that network , The quotation of industrial control IC for automobiles remains relatively stable.
