Great!Smic suddenly announced, analysts: ASML needs to make a decision quickly

2022-06-22 0 By

Chip industry friends must understand, has always been a concern in recent years, many industries are the chips in short supply situation, in order to solve the problem of supply, the world’s major chip foundries were heavily in plant expansion, each big manufacturer recently results came out one after another in 2021, the most high-profile, but we also our smic.Looking at the results smIC has reported, it has to be said that smIC’s results are impressive, with the fastest growth of the world’s four largest pure foundries, with revenues up about 40% and profits directly doubling, but that’s not the best part.Smic also suddenly announced two better news. We know that smIC’s market share is not very high at present, but it is only a step away from the third place in the world, but despite that, SMIC has now achieved two firsts.The first is the number of customers first, the second is the product category first.There is no doubt that with such a foundation smIC will have a bright future.In the foundry market, generally customers will choose to cooperate with a wafer factory for a long time, because the foundry cooperation is not a simple task submitted by customers, which requires the foundry to run in with customers for a long time.Therefore, most customers will not easily change the foundry, and in turn, the foundry will give priority to the production of chips for customers with long-term cooperation, so this is a mutually reinforcing mode.Take SMIC’s plant expansion in recent years as an example. As mentioned above, various foundry plants are expanding their production. Isn’t SMIC worried about overcapacity?Smic has said that, in fact, most of the capacity expansion has already signed binding agreements with customers, which once again shows that there is a strong long-term cooperative relationship between chip OEM and customers.In addition, recent media reports said that TSMC is also seeking long-term cooperation with customers, reportedly in order to avoid the risk caused by overcapacity.As a result, analysts say ASML is close to making a decision.As we know, ASML is the only supplier of EUV lithography machine in the world at present, but it is not able to supply SMIC.Although smIC’s main revenue at present comes from mature technology, with the development of the industry, customers’ products must be upgraded. Therefore, it is foreseeable that in the future, more and more CUSTOMERS of SMIC will need to upgrade to advanced technology.At present, this time window should coincide with the commercial time of our domestic EUV lithography machine.As mentioned in the previous article, THE Institute of Optics and Electronics of the Chinese Academy of Sciences has its own intellectual property rights to achieve a 22-nanometer process using 365-nanometer wavelengths of light, while ASML requires 193-nanometer deep ultraviolet light.This breakthrough indicates that our domestic advanced technology lithography machine will not be commercially available for a long time. Even ASML president said recently: I am not saying that China cannot make top-notch lithography machine.In addition, we also need to pay attention to one point, as we mentioned above, the customer and the foundry need a long time to run in, so the viscosity is very strong, in fact, the supplier of lithography machine and the foundry is also such a relationship.Take ASML for example at the beginning of its birth, at that time, major chip enterprises mainly used GCA equipment. Later, ASML’s lithography machine passed the test, but still did not get orders, which shows how difficult it is to enter the market.Therefore, ASML will lose this window of opportunity once our domestic advanced lithography machine is mass-produced, and the window will be closed.Therefore, ASML needs to make a decision as soon as possible. It should be known that ASML’s revenue from mainland China has already exceeded that of the United States. This is a market that can be imagined infinitely, and there are opportunities, but they will not always exist.What do you think about that?Welcome to share your views.