Supply Continues To Be Tight, Power Semiconductors Currently Have An Average Price Increase Of 10%

The impact of wafer shortages is increasing. The power semiconductor industry currently has an average growth rate of 10%, and some products have even higher growth rates.

The reporter learned from a number of companies in the supply chain that “wafers are out of stock, and it is not ruled out that there will be more increases. H1 orders will be full in 2021, and even orders will be scheduled until the end of next year.”

The recent price increase in the power semiconductor industry is not unexpected. The main reason is the tight supply.

Everbright Securities said there are two main reasons for the tight supply:

1. Redistribute 8-inch production capacity. The strong shipments of tablets, PCs/NBs, and panels under the influence of the epidemic have led to good demand for logic products such as driver ICs and touch ICs. 8-inch production capacity is tight, and the production capacity of power devices such as MOSFETs with less value is limited;

2. The 8-inch total production capacity (about 17.9 million pieces/month worldwide) is difficult to grow. First of all, it is difficult to expand the new production line. OEMs and IDM manufacturers are deploying 12-inch production lines. The 8-inch production line has not been expanded for many years, and the expansion of the 8-inch new production line still takes 2-3 years, which cannot solve the current capacity shortage problem. Secondly, second-hand equipment is not enough to build new production lines. Without the expansion of the new 8-inch production line, only second-hand equipment can be purchased to build an 8-inch production line. According to SurplusGlobal data, there are about 700 8-inch second-hand equipment in the world, but the global demand for 8-inch equipment is at least about 1,000. Second-hand production line construction is also difficult.

The power semiconductor market is huge and continues to be booming

Huachuang Securities said that the power semiconductor market is huge, and 5G and automotive electronics provide strong momentum for industry growth. Power semiconductors are an essential element to achieve the electrical performance of equipment. They are widely used in consumer electronics, industry, automotive electronics and other fields. The total market space exceeds 40 billion US dollars. China accounts for more than 35% of global demand, and the market growth rate is significantly higher than that of the world With the rapid growth of the Internet of Everything and the number of base stations and data centers brought about by 5G, and the continuous improvement of automotive electronics, MOSFET and IGBT are expected to continue to increase in volume, driving the power semiconductor market to achieve rapid growth.

Ping An Securities analysis pointed out that in the short term, under the demand of PMIC and driver IC, the supply of 8-inch wafer foundry capacity is in short supply; with policy support, the semiconductor industry chain is expected to gain focus in materials, equipment and manufacturing in the medium and long term. Breakthrough, and actively pay attention to the progress of industrial chain company R&D and localization introduction.