According to BusinessKorea, competition in the global semiconductor wafer market is expected to intensify as it is experiencing both oversupply and weak demand. Wafer supply is expected to increase as manufacturers continue to expand their production facilities. However, the market downturn will lead to a decline in demand in the short term.
Industry observers say the semiconductor market has been slowing, but as Chinese companies expand capacity, wafer supply is expected to expand.
In fact, the global semiconductor industry has been focusing on 150mm and 200mm wafers in the past. However, as more and more companies build 300mm wafer production facilities, 300mm wafers occupy most of the market. The expansion of the 300mm wafer fabrication facility means an increase in wafer supply. Industry observers say that production expansion may become a burden on the entire market.
As semiconductor manufacturers’ orders fell, global wafer shipments declined slightly in the first quarter. According to a recent report by SEMI, global wafer shipments in the first quarter of this year were down 5.6% from the fourth quarter of last year. As semiconductor manufacturers’ orders are declining, wafer manufacturers are expected to face more intense competition.