Recently, due to the slightly weaker than expected sales in China's May Day holiday terminal mobile phone market, Taiwanese IC designers have been constantly rumoring that brand customers will revise their shipment targets for the second quarter.

Under the appearance of the strategy of "stop first, watch first and listen first" in the short-term replenishing of components by end customers, the irrational situation of "only seeking goods without bargaining price" has passed. Instead, an effective production plan for 2021 has been rescheduled.

In the face of the downstream customers because of the key components of inventory level is differ, lead to the terminal product may chip in 2021 third quarter run out all inventory and start production difficult problems, Taiwan IC design industry recently said, feeling customers may have to check it within the next season to review the key components of inventory on hand, and make some flush and adjust the action.

As for whether this will impact the visibility of orders at hand, Taiwan IC design factory said, the impact should not be very big, after all, the chip out of stock is to need time to wait, as for the relatively no shortage of chips, also need to continue replenishment.

Customers may want to have all the critical components available, but upstream foundries and chip suppliers will see a 2021 chip shortage scenario unless end market demand is weak or even much lower than expected, the industry said.

Taiwan department of IC design industry in the near future for China mobile phone market sales terminal may slightly than expected, leading to brand customers next season 2 shipment target speculation, coupled with the Indian market outbreak is aggravating, local 3 c product sales trends also deterring, cooperate with Malaysia to city, Japan outbreak seems to have a relapse, terminal market sales of some news, The assumption that wafers and chips are missing all year round is starting to make some noise.

However, most IC designers have repeatedly confirmed with their downstream customers that their current wafer capacity will not be able to effectively meet their customer needs in 2021. This means that there will still be pressure to keep up with demand. The magnitude of the pressure may vary depending on the individual chip markets, but overall, Chip shortage gap and the pressure of tight supply and demand remain.

Taiwan NB related chip suppliers pointed out that they did hear that customers were re-checking the inventory of all key components, mainly because of the serious shortage of wafers and wafers before, the upper and downstream industry chains intuitively restocked first, and adopted the strategy of "replenishment as many as they have".

But today, due to repair have been put in place, not to fill, is still a long way off, so many brand NB factory and generation industry began to organize the all the key components of their own inventory Numbers, want to one side to clear up how many NB finished product can be mass production in 2021, on the other side, also trying to know the current phenomenon of the length of the individual components of inventory level feet?

Taiwan's leading IC design company pointed out that although China's May Day holiday is a little less than expected pressure, and the global COVID-19 epidemic is still repeated, but no one has dared to order from the client, and the average wafer and chip delivery time is more than 30 weeks at present, there is no immediate risk of customer backlash in the first half of 2021.

Instead is in the third season after the arrival of the season, if the traditional season to buy gas or box office is not good, then the derivative of the season is not prosperous pressure, it will be possible to let the upper and lower industry chain began to relax the chip inventory level requirements to increase the pressure; Until then, customers won't have to cut orders.

After all, the chip is still in shortage is the fact that A customer dare not now, client B is withdraw immediately, so, even if short-term terminal market and industry chain began to murmur, TSMC, umc, such as the world's advanced Taiwan foundries and coupling of mediatek, A line of IC design industry is still the old gods in more, then never waver.

--- Excerpt from ScienceNet