02.27.2001
Singapore's Chartered Semiconductor pricing out Taiwan foundries?

• According to local fabless companies, Chartered Semiconductor offered further flexibility in foundry pricing during recent sales calls in Taiwan, going as low as US$1,500 per 8"-wafer for 0.18um geometry, and granting 30-50% discounts on older 0.25um and 0.30um processes.

• Charter's quotes appear to be 10-25% below the current pricing policies of TSMC (2330 'Tai Ji Dian') and UMC (2303 'Lian Dian'), both of which are expecting sequential ASP improvement in 1Q01 with an increase of 0.18um geometry in the product mix.

• In the early stages of semiconductor downturn, foundries have less incentive to use price as a demand stimulator. However, as the cycle continues to trend down, conditions become ripe for a price war in the sector. We remain cautious on the prospects for foundry demand.

• Price competition is good news for local IC design houses like Sunplus (2401 ‘Ling Yang’) and VIA Technologies (2388 ‘Wei Sheng’).

LindaLiu@Primasia.com +886-[0]2-2547-8867