Taiwan's semiconductor upstream strong, downstream fear shuffle

Analyst Lu Jialu, chief analyst of Morgan Stanley Securities Asia Pacific, said on the 13th that Taiwan’s top-tier semiconductor makers in the upper reaches of China are still highly competitive, but downstream closures may soon face market reshuffling.

The 13th Annual “Asia Pacific Asia Pacific Summit” entered the second day of the agenda on the 13th. Electronic hot topics focused on the development of new products next year and changes in the semiconductor industry.

Taiwan Semiconductor Manufacturing Co., Ltd. Taiwan Semiconductor Manufacturing Co., Ltd. and China SMIC Semiconductor Technology Co., Ltd. all attended the current Morgan Stanley Investment Summit, and coincided with the upcoming joint venture in China's packaging and testing plant. The trend of industrial change has particularly attracted the attention of legal persons.

The newspaper interviewed Lu Jiawei, chief analyst of Morgan Stanley Securities Asia Pacific, to discuss the next big things in the technology industry and the changes that the semiconductor industry will face. Lu Jiayi was the first member of the Semiconductor Industry Awards in the Asia Pacific region in the Institutional Investor magazine in 2014. The viewpoint was highly praised by the investment institutions. The following are the interview minutes:

Q: What changes will China bring to the industry in the near future when China actively supports the local semiconductor industry?

A: As a matter of fact, China is not the first example of the national power to nurture the semiconductor industry. The past cases have not all been successful. The semiconductor industry is very broadly classified. In the short term, in the field of foundry and IC design, the Taiwanese tier 1 (first-tier big-factory) has strong technical advantages and will not be caught up at the moment; however, the second-tier manufacturers are affected. The speed may be faster.

In addition, due to the relatively low technological content in the field of downstream packaging and testing, with the mainland packaging and testing plant will soon join hands with Singapore's packaging and testing companies, assessment of semiconductor packaging and testing industry will reshuffle in one or two years; mainland related large-scale sealing and testing plant, may Started to grab the orders of Taiwanese manufacturers.

As for orders for the large-scale processor of the US-based smart phone brand, which is widely seen in the market, it is expected that Apple will launch smartphones, smart watches, large-size tablets, and even televisions next year, and the demand for chips will not be small. It is expected that orders for major commodities will still be swallowed by Taiwanese manufacturers, and the share of Korean manufacturers will be lower.

Q: The growth of smart phones slows down. What are the opportunities for the future?

A: The growth rate of smart phones in mainland China is not as strong as in the past. However, the number of smart phones produced in the mainland will be expected to increase in the future to mature countries in Europe and the United States. This is not the case for the past few years.

We can see that the brand image of the major mainland manufacturers has increased, and even the Chinese group has acquired the mobile phone brands of Europe and the United States. This represents the Chinese-made or Chinese-branded mobile phones and will not only be sold to other emerging markets in the future. Corresponding to the Taiwanese supply chain, after the chip makers complete the new mainstream product line, the overseas market will be more open.

Q: After experiencing a laptop and smart phone to whirl up new technology, what is the next trend in technology?

A: I think the most likely to become mainstream is the Internet of Things (IOT) and wearable devices. In the long-term perspective, if the non-Platform operating platform industry develops with wearable devices, in order to take into account the speed of operating platform upgrades, chips and programs may be handed over to a few leading manufacturers for unified responsibility. Competitive Taiwanese manufacturers are still in this trend. Will occupy a place. In addition, wearable devices mainly consider thinness and functionality, and even if the number of chips used may be less, they need more advanced technology. This will be very beneficial to leading manufacturers.