The Chinese semiconductor industry has reached full capacity utilization faster than other countries, TrendForce analysts said on June 20, writes the British electronics magazine Electronics Weekly.
According to TrendForce, Chinese semiconductor production facilities are operating at full capacity. Major Taiwanese factories managed to reach only 70-80% utilization.
This situation is mainly due to two factors: import substitution of semiconductor devices and the self-sufficiency policy. At the same time, the situation may lead to an increase in chip prices in China, which contradicts the PRC’s policy of reducing the cost of chips.
The second half of the year typically sees higher demand for semiconductor devices. Capacities are already fully utilized and production expansion is significantly hampered by US sanctions on the supply of equipment and technologies.
A greater excess of demand in China over supply may affect the utilization of Taiwan’s contractual capacities. According to analysts, part of the demand will be redirected towards Taiwanese production.
Source: Rossa Primavera
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