Consumption to promote the semiconductor industry cost pressures affect equipment manufacturers

The world's largest foundry TSMC's new CEO Rick Tsai (Rick Tsai) warned that the semiconductor industry in the industry to cost sensitive transition, and over consumption market is becoming a new growth engine of the industry, on this occasion, semiconductor equipment and materials suppliers must try to reduce costs and increase flexibility.

Said to a group of equipment manufacturers Rick Tsai the day before, they must improve the productivity, to meet consumer electronics sales to promote the new reality of the future chip industry growth. In the past, the main driving force for the growth of the semiconductor industry is PC sales for enterprise customers.

"Digital consumer market competition is very intense, change very quickly and very large fluctuations." Rick Tsai said at the SEMI-Taiwan annual trade show. "When people in the United States told me that they would be able to buy a DVD for $30, I was so shocked that I almost had a heart attack. But this is the reality we have to face."

Tsai cited a number of examples of downstream supply chain price pressures, the final conclusion is that the foundry and IDM will put more pressure on equipment and materials suppliers to reduce costs.

Cost sensitive in order to meet the market demand, Tsai said Asia's equipment localization customization trend. Japan is the first to enter the field of equipment, followed by South Korea, China and Taiwan have also tried, is currently China's desire to become a low-cost equipment provider.

However, with the exception of Japan, Asia has not achieved much success in the field of equipment, especially the advanced technology products. Aviza Technology president and CEO Jerry Cutini said that due to the cost of labor in the field of equipment is not important, so do not need to worry about a large number of equipment manufacturing will migrate to asia.