Foundry industry is facing a test of small and medium sized plants are facing the merger tide

During the held in the day before the SEMI Strategic Business meeting, the industry said the foundry model will not disappear, but takes a relatively long time to consolidate.

The foundry model is thriving in the case of the Fab semiconductor design company (fabless), but it is not easy for the fab. In addition to TSMC, UMC (TSMC) (UMC) and a few company, almost all of the foundries are at a loss, and in the foreseeable future is also unable to reverse the decline.

ESilicon chairman, CEO and President Jack Harding said that the number of foundry service providers are too many, many companies look similar, and there is no difference in terms of providing products. ESilicon is a non Fab ASIC design company. Harding said, the wafer has become a generic product, it is difficult to see what the difference between the different foundry service providers."

Small and medium scale wafer foundries, many are looking for opportunities to merge. Harding said: "they are not being acquired is being cleared." UMC branch president of the United States Fu Tai Liou agreed to a certain extent. "You need a modest scale economy," Liou said at the meeting. "From a business point of view, you do need to be ranked first in the industry, or second. If you are in fifth place, you may be kicked out."

The merger has sounded the clarion call, the recent German CMOS wafer foundry X-Fab Semiconductor AG agreed to take over the Malaysia 1st Silicon Foundries Fab Sdn. Bhd. The deal allowed X-Fab to double its capacity. On the other hand, the foundry industry is also emerging new faces. After dabbling in the foundry business in recent years, Samsung has been eager for a fight, ready to into the fray.