Factory of the world's third largest semiconductor silicon wafer ring chip xiu-lan xu, chairman of 25, says of semiconductor silicon wafers in short supply, the full ring chip production capacity to 2020, at least four years can't see the sign price inversion, tide and steal goods from the mainstream of 12 inches all the way down to 8 inches and 6 inches.

Xu revealed for the first time that some customers have started to talk about orders from 2021 to 2025, and the price will not be lower than the price in 2020. As a result, the supply of the ring will be given priority and the price will not be reduced. This means that the order visibility of the ring has been seven years, making it the most visible electronics industry in the current economic climate.

Silicon wafer is the most important materials, semiconductor production ring chip clients included TSMC, samsung, such as a line of semiconductor companies, positive message released xiu-lan xu industry, market attention u.s.-china trade war influence on semiconductor industry, but the actual demand of industry continued to hum. The industry believes that as the price of silicon wafers continues to rise, the first-tier semiconductor manufacturers have priority purchasing advantages and are not affected, but small - and medium-size wafer mills will face greater pressure.

Xiu-lan xu yesterday is in the circle of ring spherulite shareholders after the meeting, release the above information, when questioned her optimistic expectations, ring spherulite round this season went up in price quantity and t fall back under the help, operation have the confidence to pay out even ten quarter growth.

According to xu xiulan's analysis, this wave of semiconductor silicon wafer is in short supply, which is mainly related to the limited new production capacity and the increasing demand for automobiles.

She said, the global semiconductor silicon wafers main suppliers including the letter, winning high, ring chip, LG and Siltronic five, such as world market share of 95% in total, recently there are plans to increase production capacity, but it is only through to the bottleneck, production scale is not big. However, demand from downstream customers is strong and has spread from grabbing 12 inches of capacity to 8 inches, and now even 6 inches are being snapped up, far more than expected.

Ms xu said that with strong customer demand for orders, the company had gradually increased its share of contracts, which she would not disclose as a percentage of capacity. She emphasized that due to full capacity, discuss the new order 2021, ring still choose single chip preferred supplier, will not reduce the price, means that the four years, semiconductor silicon wafer prices still can't see the reversal, industry over the next ten years is still very healthy.

Xu is confident that this season's revenue will be better than last season's, with earnings outpacing the first quarter as she delivers a report on her 10-year growth. The second half of the year will also be better than the first half, helped by higher prices, easing bottlenecks and increased output in cooperation with Japanese businesses.

She stressed that the chip in the future will reduce the capital expenditure 12-inch wafer capacity is concentrated in the price is higher, 8 inches is extended with partners, 6 inches won't invest any capital spending, if not enough supply market requirements, will respect customer choice, also won't reduce the price to rob.

Xiu-lan xu said, because the customer demand of 12 inches of semiconductor silicon wafers, considerations to capacity, price, and cut into the advanced products and other conditions, ring chip for Korea invest higher risk, expected in September to finalize the details after formally announced. She stressed that the semiconductor silicon wafer industry will remain healthy for the next decade, even though major suppliers will increase production in the future.

South Korean media disclosed earlier, ring chip plans to invest 480 billion won (RMB 2.82 billion) in local expansion of 12 inches of semiconductor silicon wafer production capacity, the site is located in the south city, in 80 kilometers south of Seoul, estimated revenue over the next five years at 900 billion won (RMB 5.28 billion), are expected to be completed in 2020. The company has decided to expand its 12-inch silicon wafer program in South Korea, and its production capacity is mainly delivered to samsung, SK hynix and other semiconductor manufacturers nearby.

Ring spherulite circular stressed that the relevant investment case the requirements would like to still have to evaluate related investment, will consider price of silicon wafer with a reasonable profit, the customer commitment and capacity and must be the next generation products under the principle of the three will consider expansion.

Ring, except for south Korean chip the evaluation of investment location, including Japan and the United States, must be comprehensive analysis to make a decision, now South Korea has conforms to the three elements, would let ring chip decided to travel to factories.