China’s Strategic Expansion in Semiconductor Production Alters Global Pricing Landscape
China is rapidly increasing production in the semiconductor sector, particularly in SiC and mature chips, resulting in substantial price reductions that pressure global competitors. Chinese suppliers now offer SiC wafers significantly cheaper than before, prompting challenges for established manufacturers, who are experiencing financial difficulties due to this intense competition.
A report by ijiwei, citing Nikkei, has revealed that China is significantly enhancing its production capabilities in the mature semiconductor and niche substrate markets. This expansion is leading to unprecedented price reductions, which are applying considerable pressure on the global semiconductor sector. Notably, Chinese suppliers are offering 6-inch silicon carbide (SiC) wafers at prices as low as USD 500, in stark contrast to the USD 1,500 price tag from suppliers like Wolfspeed two years ago.
In summary, China’s rapid advancement in semiconductor production, particularly in SiC and mature nodes, is reshaping the global market dynamics. As Chinese manufacturers increase their capacity and lower prices, traditional suppliers face heightened competition. This trend poses challenges for established firms and highlights the ongoing evolution of the semiconductor industry. The anticipated growth in Chinese production capacity raises concerns about overcapacity and its implications for global pricing trends.
Original Source: www.trendforce.com
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