Liji is negotiating an order for 2023 and customers are willing to make an advance payment for production capacity in the next three years.

Huang Chongren, chairman of LSMC, said recently that the company continues to receive orders for 8-inch and 12-inch wafer manufacturing services and is currently negotiating 2023 orders with customers.

According to Huang Chongren, the outlook for the OEM offer remains optimistic, adding that Liji intends to raise the offer to a fair and reasonable level with capacity constraints likely to last until the end of 2022.

Liji has raised its contract offer since the first quarter of 2021 and expects another upward adjustment in the coming quarters, according to industry insiders.

Lidan is in talks with several major customers who are willing to make advance payments for production capacity over the next three years, the source said. These orders will further boost SMC's upcoming 12-inch fab expansion project.

According to it, Lidan's 8-inch fab has received huge orders from Mitsubishi for nearly 30000 wafers a month. These orders will double in 2022. At the same time, LSMC is also negotiating a new order with a Japanese IGBT customer.

The company has received a large number of orders for professional DRAM, display driver chips, CMOS image sensors and power management chips, as well as orders for customized and small batch products. Fuding Advanced Electronics, Wonder Optoelectronics, MediaTek, NXP and Hezhong Semiconductor are the main customers of the contract manufacturing company this year.

In 2021, LSMC plans to focus more on automotive, industrial and wireless communications applications, while further expanding its customer portfolio in non-mainland China, according to sources.

In terms of production capacity, Liji has three 12-inch wafer plants in Hsinchu Science and Technology Park, Taiwan, providing 0.18 micron to 21nm manufacturing, with a monthly production capacity of 106000. There is a 12-inch joint venture plant in Hefei, China, which mainly handles orders for display driver chips, with BOE and Lianyong as its main customers.

In terms of 8-inch production capacity, Ligan has an 8-inch fab in HSP and Chunan in northern Taiwan, providing 0.18-0.11 micron process manufacturing with a monthly production capacity of 105000-110000 wafers.