After TSMC announced to raise its wafer foundry prices for its advanced process technology products under 0.13 micron, UMC and SMIC also indicated possibility of the similar measures. Vice GM of UMC’s global marketing department said that the company had evaluated order amount and made plans for the possibility of rising foundry wafer prices due to inflation and the continuing rising oil prices. Likewise, Shanghai wafer foundry SMIC also announced that the company will consider raising prices according to the market environment.
UMC indicated that the company had been evaluating the influence posed by the rising oil price and inflation, hoping to react on the prices. But currently the company hasn’t taken action to raise its foundry wafer prices for customers would not like to accept it. So, besides taking measures to improve production efficiency to lower cost, UMC is actively discussing the problem of raising prices with its customers.
SMIC noted that as research and development cost is increasing and the semiconductor market has entered hot season, it is a market trend to raise ASP. Although the company had quit DRAM foundry market in Q1, sales revenue for its advanced process products still increased largely thanks to the increasing amount of orders of its 0.13 micron and 90nm logic foundry products. The company said that it will evaluate the condition for its orders and make price strategies accord with the company’s profit-gaining objection as well as customers’ expectation.