IDMs, foiundry, semiconductor, Intel, Samsung, TSMC, UMC, GloFo, Globalfoundries IDMs to hurt pure-play foundries, says report

LONDON – The offer of foundry services and aggressive spending by integrated device makers (IDMs), including Intel and Samsung, is set to impact on pure-play foundries such as TSMC and UMC, according to Taipei Times, which referenced a report from Fitch Ratings.

The increased risk to the pure-play foundries will start late in 2012, the report quoted Fitch Ratings as saying.

While TSMC and United Microelectronics Corp., which currently hold about 60 percent of the foundry market between them, would be hurt by the efforts of Intel and Samsung, smaller foundries such as Semiconductor Manufacturing International Corp., could be even more vulnerable during a downturn, the report said.

The report also noted that Abu Dhabi controlled Globalfoundries Inc. is poised to become a strong foundry player and that Powerchip Technology Corp. is planning to enter the market.

The world's major IC foundries have allocated about $19.7 billion for capital expenditure in 2011, up on $13.8 billion in 2010, the report quoted Fitch as saying. This is giving rise to concerns of oversupply, the report said.

"Fitch expects capacity utilization to weaken over the next six quarters — before substantial over-supply kicks in from 2013," the report quoted Fitch analysts as saying.


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IDMs, foiundry, semiconductor, Intel, Samsung, TSMC, UMC, GloFo, Globalfoundries IDMs to hurt pure-play foundries, says report