By Koen Verhaege, CEO, Sofics
Two different perspectives
In 2022, the pure-play foundries (TSMC, GlobalFoundries, UMC, SMIC …), collectively have produced more wafers than 100% of their wafer capacity (per the GSA) – and at the same time wafer prices have gone up significantly too. Foundries gear up for 2024 – according to SEMI, collectively they are spending north of $500B to build new fabs. EU and US governments launch previously unseen subsidy budgets for semiconductors.
But purchase manager indices show a negative trend as we leave 2022 behind us (J.P.Morgan). Inflation, at least in Europe, is higher than ever since 2007 – that’s when the #iphone was first introduced. The consumer’s consumption power is reduced (unless you work in Belgium, where salaries are automatically adjusted about 11% coming January – must be the only country in the world, but let me know if we are mistaken).
These are 2 perspectives that seem to clash, yet we do live in one world, one reality. So how does this all add up? Or better how do we resolve this? We will be happy to read your comments.
