Heard on the Beat: Foundry prices up; lead times extend
By C.V. Dee
Silicon Strategies
12/05/2003, 12:50 PM ET
If you haven't reserved your foundry capacity by now, then you may be in trouble. Not just trouble, but big trouble, according to sources at the Fabless Semiconductor Association (FSA) awards dinner on Thursday (December 5, 2003) night.
Not long ago, supply exceeded demand in the silicon foundry business. Now, the market has taken an abrupt about-face, as foundry prices have suddenly shot up for select processes and lead times are extending, according to sources at the FSA event.
Demand is huge and foundries cannot keep up with orders. Leading foundries are reportedly raising--or in the process of increasing--select wafer prices by 10-to-20 percent, according to sources at the FSA event.
Lead times for 130-nm processes "are way out there," according to one executive from a foundry supplier. And lead times for mature 180-nm processes are ranging from "16 to 20 weeks," the source said.
The source claimed that customers are literally camping out at the company's parking lot and waiting for more wafers. "It's hot right now, but customers are killing me," the source added. |
