2011 high-end chip foundry will be severely cut

January 26 news, according to foreign media reports, according to research company iSuppli's latest report shows that by the end of 2011 have the ability to produce high-end devices 20-22 semiconductor semiconductor chip factory will be reduced to three.

The research agency said that only three strong plants could survive in this market in 2011, including Taiwan Semiconductor Manufacturing Co., Ltd. in Taiwan, Global OEM and Samsung Electronics, which has recently announced its alliance with IBM. While these other vendors will serve the rest of these markets, such as Taiwan’s UMC and SMIC, the factories will shift to producing 28- to 32-nanometer products.

According to Larry Yelenek, director and principal analyst of semiconductor manufacturing at iSuppli, the huge cost of advanced semiconductor process technology has resulted in only three powerful companies at the end of this year to bear such costs. If these other foundries join the field, semiconductor companies in the advanced chip market will face the least competition.

According to the report, changes in the market will force some suppliers to set up their own factories and manufacturing systems; Intel has benefited greatly from such a manufacturer. Intel can provide its own foundry services for design companies and suppliers who want to use Atom processors. But for the industry as a whole, the changes that need to be made are too big, although it can make a huge profit. The input of Intel Samsung and international OEMs in this area is enough for them to challenge the position of TSMC in this field. The company has a common market share in the field of foundry, advanced technology and huge production capacity.

iSuppli warns that Japanese companies may suffer the most damage. It is expected that by the end of 2011, all chip companies that produce 32-nanometer specifications and below will be completely wiped out.