Trendforce warns of overcapacity in China fab expansion
Market researcher TrendForce has repeated its prediction of overcapacity in mature semiconductor process nodes above 28nm as China dramatically expands the number of fabs it is building.
TrendForce highlights its statistics that show there are 22 wafer fabs under construction, with 15 of them being 300mm (12in) facilities and eight 200mm (8in) plants, all focussing on mature nodes at 28nm and above and driving the risk of overcapacity.
This follows comments by analysts at Barclays in Asia highlighting the growth in fabs, and the latest market forecast by Future Horizons, due tomorrow.
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There are currently 44 wafer fabs in China, with 25 of them using 300mm (12in) wafers, 15 at 200mm (8in) and just four of the older 150mm (6in) plants. This excludes seven fabs that have already been mothballed.
TrendForce says that as China’s mature process capacities emerge, localization trends for Driver IC, CIS/ISP, and Power Discretes will become more pronounced, leading to risks of client attrition and pricing pressures for second and third-tier foundries with similar processes.
SMIC, Nexchip, CXMT and Silan plan to construct 10 more wafer fabs, including nine 300mm plants, by the end of 2024, bringing the total to 32 large-scale wafer fabs, all focusing on mature processes.
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