Foundry capacity continues to be tight, IC design manufacturer MediaTek buys wafer equipment and leases foundry

According to media reports in Taiwan, MediaTek, a major IC design company, has strong growth momentum this quarter. In order to ensure foundry production capacity without affecting chip shipments, the company has invested 1.62 billion yuan in research and development, Canon Co., Ltd., and Tokyo Weili. Other equipment factories purchase wafer manufacturing equipment and lease these equipment to Power semiconductor Manufacturing Co., Ltd., a foundry of Powerchip Group.

This time, MediaTek bought the machine and leased it to Power Semiconductor Manufacturing Co., Ltd. Power Semiconductor Manufacturing Co., Ltd. has three 12-inch fabs, each with a monthly production capacity of about 100,000 pieces for memory and logic ICs. The two 8-inch fabs have a total monthly capacity of 100,000 pieces, and will increase their monthly production capacity by 20,000 8-inch pieces. MediaTek’s board of directors has approved an investment of 1.62 billion yuan to purchase machinery and equipment, and obtain relevant equipment before leasing it to Power Semiconductor Manufacturing Co., Ltd.

Industry insiders said that even MediaTek must find ways to prepare its own production capacity, revealing the prosperous market conditions of MediaTek and foundry.

MediaTek recently released its third quarterly report. The company’s third-quarter net profit was NT$13.37 billion, higher than the market’s estimate of NT$12.1 billion.

The latest news shows that MediaTek is preparing two new chip products for the market, models MT6893 and MT6891. These two new chipsets will be based on 5nm or 6nm manufacturing processes, and may provide high performance due to the more powerful ARM Cortex-A78 core.

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Author: Yoyokuo