Wafer Shortage Leads to Price Spikes

Wafer Shortage Image

Shortage of 12 Inch Wafers to lead to pricing hikes!

Several top chip manufactures have been notified that they can expect a 10-20 percent price increase from their wafer suppliers.

Wafer suppliers Shin-Etsu Chemical, Sumco and Siltronic are said to have informed Micron, TSMC, and UMC that they have tight supply & are expecting a 2% increase over the next several years which will not be able to keep up with demand.

History shows that this demand increases at a rate of about 11% per year.

Some sources have said Siltronic has seen demand outweighing supply and has dipped into safety stock to support the rising in need for 12 inch blank wafers.

What can we expect?

Look for many manufacturers to raise pricing and for lead times to begin to increase as the wafer fabs cannot keep up with rising demand. We have already seen this with the average Contract Price of PC DRAM 4GB Modules Rose to US $18 in November, According to TrendForce.

Worldwide demand for Smartphones and SSD Adoption Rate in Global Notebook, which is growing at approx. 10-15% annually, which will continue to drive the spike in price hikes.

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