To ensure the maximum utilization of their fabs today and in the future, Chinese chipmakers have already started cutting tape-out prices to retain existing customers and attract business from Taiwanese IC design companies, reports IJIWEI (via TrendForce). This trend comes as China is expanding its mature node production dramatically as it appears to plan to flood the market with chips to push out competitors. Chinese contract chipmakers have yet to increase their output considerably, but gaining customers will be important as it increases production throughout the coming quarters.
Mainland China-based SMIC, Hua Hong Semiconductor, and Nexchip reduced their tape-out service prices last year for Taiwanese chip design companies to secure orders for new capacity. As a result, some customers of GlobalFoundries, PSMC, Samsung Foundry, and UMC canceled their orders with their regular production partners as they geared up to move them to Mainland China's wafer fabs, according to the report. READ MORE...
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