The semiconductor market is in a cold winter,and"hot shutdown"has become a new trend,The semiconductor process market is not good,and the price reduction effect of wafer foundry is poor.In order to cut costs,major South Korean foundries such as Samsung have used the"hot shutdown"strategy.This trend has spread to UMC,World Advanced,LPC and other Taiwan foundry,revealing that the short-term order prospects are bleak,the process market is grim.

　　According to Korean media,South Korean contract factories such as Samsung,Key Foundry and SK Hynix System IC,which is owned by SK Hynix,have recently been using only 40 to 50 percent of their capacity.Due to weak terminal demand,the three South Korean foundershave chosen to shut down some mature process equipment and perform"hot shutdown",highlighting the downturn in the mature process of the foundry industry.

　　"Hot shutdown"means that operators shut down some idle capacity equipment in response to weak demand,which means that they are not optimistic about short-term orders.Relevant industry insiders did not comment on rumors that the"hot shutdown"phenomenon affected Taiwan contract manufacturers such as UMC,World Advanced,and LDC.

　　Umc stressed that the current operating outlook is consistent with the previous statutory meeting and does not see signs of a strong recovery in market demand.In particular,the capacity utilization of 8-inch fabs is lower than that of 12-inch fabs,so the company will flexibly manage the production line and work closely with customers to order.

　　World Advanced said overall terminal demand was weak in the quarter,with customers cautiously stocking up and order visibility of only three months.Capacity utilization is expected to be flat at approximately 60%,with some equipment adjustments and routine maintenance taken into account.It is also expected that"hot downtime"will be performed if customer needs are met.

　　Regarding the mature process market,Fang Lue,chairman of World Advance,said that the company and customers jointly respond to changes in market conditions and pressure,including discount and other strategies.He hopes that as the 8-inch wafer foundry market improves,gross profit margin will rise with the increase in capacity,and the target is to return to 30%or even more than 40%.

　　LPC said that in the case of low capacity utilization,the cost of electricity should also be taken into account.The company will re-adjust production lines,improve cost control,and strive to save and reserve research and development capacity.

　　The industry emphasizes that foundries based on mature processes,through consistent output control,may alleviate the deterioration of the industry situation,even if it cannot immediately reverse the situation.