With the sharp decline in the terminal consumption market, some small and medium-sized integrated circuit projects have been delayed due to the delay in the supply of goods by customers.Also, in order to obtain the production capacity of factories and plants of packaging and testing during the boom, they are forced to sign long-term contracts with suppliers, or even prepay for goods. , When inventory cannot be made and money is stuck on the wafer end or sealing and testing end, it also puts the small and medium sized IC design under pressure on capital rotation.
The industry pointed out that in the past, when the boom was booming, some IC projects had a small revenue scale and customers’ willingness to accept price increases had greatly increased. they did not hesitate to sign for a long time. fixed-term contracts with factories. How could the boom be significant? In the cooling phase, customers not only do not buy goods, but also require IC designers to reduce prices, which puts pressure on operating equipment.
In particular, the general market situation has reversed too quickly and the production time for the wafers is around three months. Some IC models cannot adjust the wafer quantity in time, so they can only keep the inventory level rising. Some industry players fear that if the inventory level is too high, if it is eliminated within a year, it will only be able to suffer the loss of the inventory drop and will be willing to pay the liquidated damages directly to the factory.
Furthermore, the same situation not only occurs on the wafer side, but also because the packaging and testing factories don’t dare to recklessly invest at the high point of the boom, so they sign long-term contracts ranging from 3-7 years with IC design companies and even require prepayment as a next investment. IC design has also become a sandwich between branded factories, large wafer factories, and packaging and testing factories. The industry predicts that this wave of prosperity will cool too quickly and some small and medium-sized IC designs can be eliminated.
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