The foundry sluggish IC design industry gross margin is the icing on the cake

Taiwan IC design industry recently estimated that second quarter (Q2) wafer foundry industry boom may not be expected if the heating rate is fast, and in the short term on the wafer planes, the new order needs badly, the face of the season foundry price it seems a certain bargaining space, therefore, the majority of IC at present, the Q2 design industry gross margin higher than the first quarter of the views expressed optimism, and the rate even up to 2 ~ 3 percentage points. Due to high decibel about foundry price issue is very sensitive, therefore, the Taiwan based IC design industry in the face of recent Q2 expected gross margin trend on the issue, expressed due to Q2 new products to enhance the proportion of shipments, and with the first quarter performance base is relatively low, the quarter revenue is expected to significantly improved, so in a single quarter of the average gross the interest rate will be higher than the first quarter of the argument, the high sensitive issue is expected to price again with the oem. However, including LCD driver IC design industry and consumer design companies have privately said that due to the short does not see the boom has been picked up signals, therefore, the current chip average price (ASP) is still a great downward pressure must face, so if the foundry is willing to cooperate with the price, in order to effectively maintain the city share the rebound should be easy to create a win-win situation. In addition, including Taiwan, mainland China, South Korea and Singapore and other second tier foundry industry, is also due to depression has not yet significantly rebound trend, and capacity utilization is still in everyone to eat a case, grab a single action is still common, once the main foreign competitors and cheap weapons wafer. The average price decline is bound to chip speed faster, so let Taiwan design industry to maintain market share in the process more difficult. Therefore, Taiwan IC design company at this stage still privately asked wafer planes continued to price, the day before and have access to TSMC, UMC (2330) (2303) Goodwill response, it is understood that the wafer planes held by the day before the business meeting, still need to make high-level "best effort" to reach the the performance of high growth season goals this season, the foundry price continued to decline in the trend, should have been established, but in this regard, TSMC, UMC spoke pipeline both declined to comment. In fact, Taiwan IC design industry in the traditional off-season after the Q1 out of the shadows, Q2 revenue gradually back to temperature trend, would have led the company's average gross profit rate is higher, and the foundry quotation if there is a continued decline in action, is just icing on the cake case. However, the gross profit rate is higher than the first quarter how much is it to see the design industry competitiveness of the products, after all, new product gross margin for the marginal contribution is the largest.

Source: IC Chinese trading network