The capacity utilization rate of many wafer foundry in South Korea has dropped sharply, and Samsung Electronics still has strong demand.

December 9 news, according to foreign media reports, with the decline in the demand for consumer electronic products, the demand for chips also declined accordingly, affecting many manufacturers in the field of chip supply chain.

The latest foreign media reports show that the capacity utilization of many wafer foundry in South Korea has declined sharply, with the exception of Samsung Electronics, which has strong demand for advanced process technology.

According to foreign media reports, South Korean wafer foundry with declining capacity utilization, mainly DB Hitek, Key Foundry, Magnachip and SK Hynix system integrated circuits, declined sharply after entering the fourth quarter, and is expected to decline even more in the first half of next year.

Specifically, foreign media said that the capacity utilization rate of DB Hitek has dropped from 95% in the third quarter to the current 80%, while the capacity utilization rate of the other three contract industries has also dropped to 70% and 80%.

Foreign media also mentioned in the report that DB Hitek benefited from chip shortage and high demand for consumer electronics products between 2017 and the first half of this year. The capacity utilization of their fabs increased from 81.9% in 2017 to 91% in 2018 to 94.5% in 2019 to 97.9% in 2020 and 96.7% in 2021, and still reached 97.9% in the first half of this year.