Yoshitaka (2458-TW) announced that it will pay the fabulous one-off damages, which is a shock to the industry. The market is also concerned about the signing of LTAs (long-term agreements) by various companies. Jin still has to observe three important points, including the inventory level of the company and its customers, the forecast of future film production and the progress of the product iteration, in order to calculate the most beneficial way for the company. .
The industry admits that the economic situation has changed sharply since the second quarter of this year and the third quarter has become even more severe. The inventory level of integrated circuit design companies continued to rise. To prevent inventories from turning into an uncontrollable situation, some companies also fell in the second and third quarters of the film and pay a fine to the fab for not reaching the current amount of incoming films.
The industry felt that if the industry’s stock-out rate is extremely slow, for example, the PC industry has triggered an unprecedented wave of replacements in the past couple of years. It is quite low. As long as the industry produces more films, the inventory will not be cashed and the money in the account has to be transferred to the factory. The financial pressure is evident. Therefore, the industry took the lead in firing the first shot and decided to default.
A one-time default decision is not entirely bad. While it will impact short-term operations, the market generally expects market conditions to not be good next year. it may not be far from paying in full at one time and it can also increase the flexibility of funds.
Also, at this stage, brand manufacturers are actively preparing for the next generation products and some components are also being repeated.If IC designers continue to produce under long-term contracts at this time, the components of the Older generation products will not only be difficult to remove, but will accumulate over time. It is also necessary to list the depreciation loss of inventory. It is best to prepare in advance and terminate the contract first. It is important to stop the bleeding.
The industry believes that every LTA is different and it is difficult to decide whether to destroy it at once with a single standard.In addition to the three factors above, there is also tacit cooperation with the fabulous, human pressure, etc. they are also important factors to consider whether to withdraw from the contract.
