(Shanghai Comprehensive News) Zhao Haijun, the largest chief executive officer of SMIC, the largest chip manufacturer in China, warned that the tension of geopolitics is leading to severe overcapacity of global chip production.
Comprehensive 21st Century Business Herald and First Financial Network reported that Zhao Haijun pointed out at the performance briefing of the third quarter on Friday (November 10) that due to the tension of the Geographical Political Bureau, in recent years, it has been actively establishing chip production capacity.However, the entire demand does not have the rapid expansion of capacity. From the global perspective, there should be excess capacity, and it takes a lot of time to digest slowly.
However, he also pointed out that large markets such as China and the United States have a large demand for the entire vehicle and the entire vehicle, and the local production still fails to meet its own needs.
Zhao Hajun said that for SMIC, the company establishes alliances and binding and communicates production capacity in advance. Customers also have strategic cooperation intentions. Based on such exchanges, he believes that China's demand for semiconductor demand in the future will need great local real estate capacity in the future.SMIC also has confidence in building capacity, and there will still be customer needs and orders in the future.
He said that although the overall market requires time to digest excess capacity, SMIC will maintain a stable expansion.
Looking forward to 2024, SMIC believes that the market has become stable. The demand for mature foundry will increase due to decline in inventory. However, there is no power and highlights of significant growth.
Zhao Hajun said that in 2024, the recovery will still be the main melody. The recovery time is extended and the middle jump is in the middle. The overall trend of "double U (a small jump in a large recovery cycle)" trend.He pointed out that the increase in overcapacity and the decline in the average unit price of large products is still a challenge for the wafer foundry market.
