December 19 news, the first quarter of next year, the foundry mature process price reduction of up to more than 10%, is the most substantial since this wave of price revisions, not only willing to reduce the price of manufacturers to increase, but also a change in the previous only special node price loosening trend, there is a trend toward a comprehensive price reduction. And in the upcoming next year, a number of IC design Taiwan factory confirmed that the first quarter of next year has been foundries for mature processes to reduce prices, the magnitude of different products and process nodes, from single-digit to double-digit percentages are available.    IC design industry revealed that some IC design houses, although not yet negotiated the first quarter of next year, but also believe that the trend of wafer foundry price reduction will not stop. Even if some foundries do not seem to drop the price, but will still privately provide individual customers with preferential programs, after a certain amount of chip casting, the subsequent chip casting can be given a price reduction.    Image Taiwan foundry mature process major manufacturers including UMC, the world, the force of accumulation, etc.. The industry believes that the chip market still has a high inventory to be removed, even if the price correction, still can not pull up the IC design house to increase the amount of wafer casting willingness, resulting in foundry mature process capacity utilization and quotation "double down", the first quarter of next year will have foundry mature process capacity utilization is facing a 50% defense, and even into the pressure of some product lines began to lose money.    Seeing the bad market conditions, demand has turned weak, the wave of wafer foundry to reduce prices to retain customer orders, from the mainland factory gradually spread to Taiwan factory. Industry sources pointed out that a few foundries from the 3rd quarter for the mature process price cuts, for IC design operators, to carefully calculate the wafer casting price spread in the cost of each IC, turn around and sell to customers if they will lose money, would rather not place orders to cast. Therefore, both sides "a volume, a price", on the tug of war, bargaining, negotiation this quarter to continue to reduce the price of the chip.    Looking ahead to next year, IC design houses mentioned that they are negotiating new prices with foundries, and everyone's inventory level is still high, and the number of orders placed is still not much, and now the situation has shifted to the buyer's market.    It is reported that the capacity utilization rate of a number of foundries has declined significantly, TSMC capacity utilization rate is expected to fall to 80% in the first half of next year, of which 7nm and 6nm process capacity utilization will decline significantly, 5nm and 4nm process capacity utilization rate is expected to decline from January next year onwards.    Although UMC will actively convert its production capacity to automotive and industrial control related products in the fourth quarter, it is still difficult to resist the capacity vacancies released by the drop of consumer products, and the capacity utilization is expected to decline by 10%.    The capacity utilization rate has started to loosen due to the failure to sign long term contracts for most 8-inch products, and there is even news of layoffs.    Shanghai Huali, a subsidiary of Hua Hong Group, is producing consumer grade MCU, WiFi and CIS in 55nm process, and its capacity utilization rate has also started to decline.    Powerchip, due to CIS, DDI and other logic foundry customers continue to place revised orders, 8-inch and 12-inch capacity utilization in the fourth quarter will decline to 60-65%, 70-75%, respectively.    The world's advanced capacity utilization rate will fall to about 70%.