As per industries insider, Samsung is reportedly in talks with SK Hynix to reduce wafer supply compared to the original plan since the end of last year. The current situation is a part of a downturn in the semiconductor market. It could have a full-fledged impact on the silicon wafer industry this year.
Several semiconductor device makers are now asking wafer manufacturers to reduce the supply and demand of silicon wafers as compared to Q4 2022 orders.
For your information, a silicon wafer is a disc made by thinly cutting a single crystal pillar made by growing silicon. It is a key material that is essential for semiconductor manufacturing, but at the same time, the technological entry barrier is high, so five companies around the world are virtually monopolizing the market. Shin-Etsu and Sumco in Japan, Global Wafers in Taiwan, SK Siltron in Korea, and Siltronic in Germany.
Wafer manufacturers are also known to be struggling with various countermeasures, keeping in mind the situation in which supply will decrease in the future. Regarding this, an official from SK Siltron, a domestic wafer manufacturer, said, “We cannot reveal the specific progress of the contract with our client company.”