Friday, February 25, 2011

Manage the demand for transistor is not easily

TSMC to increase its production capacity by 19% this year to meet a demand that flies. The semiconductor market goes through a crazy period. TSMC, which produces the equivalent of 11.3 million wafers of 200 mm per year, is in a difficult position but customers are demanding more and more components for the tablets and smarpthones.

This trend is found among all Asian smelters. The turnover of the Taiwanese factories grew by 39% between 2009 and 2010 and 2011 should confirm this trend. Specifically UMC has also increased production capacity, but Intel is already drawing the whistle. Indeed, as has happened with the NAND three years ago.

A rapid increase in demand is driving manufacturers to produce too much. Providers find themselves with a surplus that they have difficulty liquidating, pulling prices down and erodes margins of market participants who are then in a delicate situation.

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