"Second Half 8-Inch Foundry Utilization Rate Expected at 50~60%"
Operating Rate Decline in Second Half Due to Weak Business Conditions
Operating Rate Expected to Reach 60-70% Next Year
The utilization rate of 8-inch foundry fabs producing legacy (old-generation) semiconductors is expected to remain at 50-60% in the second half of the year. With the market recovery slow, the industry downturn may continue until early next year.
On the 4th, market research firm TrendForce stated, "Due to ongoing macroeconomic and inventory issues in the second half, contrary to previous expectations, there will be no surge in demand."
With the economic recession continuing next year, recovery of the 8-inch utilization rate does not seem easy. TrendForce expects the utilization rate in the first quarter of next year to be similar to or lower than that of the fourth quarter.
However, from the second quarter of next year, as inventory in the market decreases, the decline in utilization rate may slow down. TrendForce explained, "The 8-inch utilization rate next year is expected to be around 60-70%."
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TrendForce also predicted that next year, the 8-inch utilization rates of Chinese foundry companies, including SMIC and Huahong Semiconductor, could surpass those of Korea and Taiwan. In particular, Huahong Semiconductor's utilization rate is expected to rise to 80-90%.
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