I can't stop! The price of domestic power IDM faucet will be adjusted after the holiday.

On Tuesday (2nd), the domestic power IDM leader Shilan Wei issued a price adjustment letter saying that from March 1, 2021, the prices of some discrete devices (all MS products, IGBT, SBD, FRD, power pairing tubes, etc.) will be adjusted, and the specific price adjustment rates need to be communicated with customers.

According to the price adjustment letter, this price adjustment is mainly affected by the rising prices of raw and auxiliary materials and packaging, and the cost of the company's related products continues to rise. in order to ensure the supply of products and maintain good business relations, we decided to adjust the price after careful study.

This is the second time that Shilan Wei has adjusted the price of its products since the end of last year. On December 9, 2020, the company issued a price increase letter, in which the price increase of SGT MOS products reached 20%.

The Spring Festival non-stop orders are full of faucets and take the lead in raising prices.

According to public data, Shilan Micro is currently one of the semiconductor IDM manufacturers with the most complete product line in China, among which the company's power device products surpassed the integrated circuit business to become the company's largest business segment in 2012, with revenue reaching 921 million yuan in the first half of 2020, accounting for 54.00% of the total revenue.

In terms of production capacity, as of June 2020, the company's 8-inch production line has achieved the production target of 50,000 pieces per month, and is continuing to invest in this production line to expand production capacity. In 2019, the company started construction of the second phase of the 8-inch line, and according to the plan, it will form an additional annual production capacity of 432000 8-inch chips after reaching production.

At the same time, the company's first 12-inch wafer production line has been put into production at the end of 2020, which is also the second 12-inch power semiconductor wafer production line in China after Huahong Semiconductor Fab 7. After full production, it will form a monthly production capacity of 40, 000 12-inch wafers.

As one of the leading domestic power IDM companies, price adjustment letters have been issued twice in March, which further reflects the rising tide of out-of-stock prices in the power semiconductor industry, which has not declined with the arrival of the New year, but has become more and more intense.

According to media reports on the 18th of this month, 90% of the workers on the Shilanwei production line will stay in the building this year to participate in the Spring Festival. Feedback from the sales side predicts that Shilan Weiwei orders will be full for the whole of 2021. In order to meet the market demand, the first 12-inch production line of Haicang project continues to expand on the basis of the first phase of production capacity, and it is expected that the second 12-inch chip production line will start construction ahead of schedule.

At the same time, according to media reports, Huahong Semiconductor, the main contract manufacturer of Power Fabless, is also expanding its 12-inch production line to cope with supply and demand in a high-profile manner.

Earthquake, cold wave may push the price increase in the industry.

It is worth mentioning that in addition to the dual drive of demand and supply since the second half of last year, the production capacity uncertainty caused by the cold wave in Earthquake in Northeast Japan and Texas in the United States is also one of the important drivers of the price rise that continues after the Spring Festival holiday.

According to previous reports, two major incidents have caused a number of wafer factories to announce a shutdown, and the supply of chips from Infineon, NXP and other automotive semiconductor companies have been affected, which will further aggravate the trend of shortage of automotive chips.

The team of Cinda Securities reported on February 22 that a new round of price increases are expected under the long-term shortage trend of power semiconductors, with high certainty in the performance of plate companies for the whole of 2021, and price increases superimposed with high capacity utilization in a cyclical way. it will lead to a double increase in revenue and profit margins of power semiconductor companies.

In terms of domestic companies, domestic power devices have been iterated from diodes and thyristors to MOSFET, IGBT, etc., the technical level has been greatly improved, and domestic terminal manufacturers have further increased their support for the localization of MOSFET and IGBT, which has ushered in unprecedented opportunities for companies in the industry.

At the same time, driven by national policy and demand, leading companies such as Starr Semiconductor, CSRC Times Electric and Silan Wei seize the opportunities of third-generation semiconductors such as SiC and GaN to quickly enter the game, and are expected to overtake on this new track.

Liu Xiang team of open source securities reported on February 8 that self-control of semiconductors has become a rigid demand, and domestic enterprises have opened the certification window for domestic devices. In addition, when the global epidemic situation is repeated, the epidemic situation in China is well controlled, and the security advantage of the domestic supply chain is also expected to accelerate the process of localization of power semiconductors.