IC design operating expenses remain high, economic scale is the way to reduce | Anue Juheng – Juheng New Vision

Various IC design companies have recently provided highly competitive salaries and benefits in order to attract high-level talents. In addition, the chip continues to advance to advanced manufacturing processes, and the cost of a single set of masks is expensive, which drives the overall operating expenses to continue to rise. We will see a decrease in operating expenses, but through operating growth, we will reduce the proportion of operating expenses and maintain high profitability.

Since the outbreak of the epidemic, due to the accelerated pace of global digital transformation, the semiconductor industry has ushered in high growth, and there has been a rare chip shortage, which has led to significant growth in both revenue and profit. In order to meet more needs, semiconductor upstream and downstream talents , such as equipment, wafer foundry, IC design, etc., all companies are actively recruiting talents and expanding operating resources.

Especially for talents in the fields of science, technology, engineering, and mathematics (STEM) in Taiwan, in recent years, due to the low birth rate in Taiwan and the transformation of the industrial structure, there is an obvious shortage of talents. Under the scarcity of resources, large factories are recruiting enough talents. , and continue to stack up to provide competitive remuneration.

In addition, chips have long pursued low power consumption, high performance, etc., and the adoption of technology has also advanced to more advanced manufacturing processes, which not only means that the cost of each wafer increases, but also means that the cost of each set of masks is also rising. Therefore, management, sales, R&D As the cost continues to increase, the economic scale becomes the only solution.

The industry admits that the largest proportion of operating expenses is R&D expenses, which include the salaries of R&D personnel, the costs of production units, and consumable equipment. Therefore, under the background of continuous investment in new technologies, operating expenses will only increase. It can be seen that with the growth of the company’s economic scale, it can effectively reduce the operating expense ratio and drive the simultaneous growth of profits.


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