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Highlights of the day: Foundries prioritizing long-term clients

DIGITIMES staff 0

Chip vendors have been striving to obtain capacity support from Taiwan-based foundry houses, which nevertheless have been unable to meet all demand due to tight capacity. The foundries are prioritizing long-term clients. The foundries also have given priority to automotive chip clients, but support for them will increase at the expense of some Taiwanese IC design houses who may see delays in shipments. The pandemic has created unexpectedly strong demand for some industry sectors, such as LCD. Taiwan-based panel maker AUO will keep production lines running at full throttle during the upcoming Lunar New Year holiday in mid February to satisfy clients' demand.

Foundries to prioritize long-term orders amid tight capacity: Taiwan-based foundries intend to give supply priorities to long-term and established clients amid tight capacity, according to industry sources.

Automotive chip demand could slow growth at Taiwan IC suppliers: Taiwan's wafer foundry houses are under increasing pressure to allocate more capacity for automotive chips, which in turn could undermine shipments of Taiwan-based IC suppliers in the second half of 2021, according to industry sources.

AUO to run production at full utilization during upcoming holiday: LCD panel maker AUO will manage to maintain full capacity at its facilities in Taiwan and China during Lunar New Year to meet robust demand from clients, according to company chairman Paul Peng.