Foundry service providers have been running at or approaching to full capacity to keep up with demand. Furthermore, they have hiked prices multiple times as chip supply remains uncertain and newly added capacity still lags behind strong market demand.
Their customers are therefore more willing to enter into long-term agreements (LTA) in view of the situation.
They will continue to push advanced process technologies forward while expanding new capacity. Emerging applications including 5G and high-performance computing (HPC) will be among the key growth drivers of foundry service demand.