According to Taiwan media reports, chief bill lu, an analyst at ubs securities Asia Pacific semiconductor today for semiconductor industry put forward outlook 2016, bullish on the Chinese mainland intelligent mobile phone quantity demand will be higher than the market had expected, including new tariffs subsidy policy in favour of low-order mobile phone.

This BBS about ubs securities Taiwan enterprises with more than 300 investors and enterprise representatives, is expected to more than 350 small customer meeting. BBS this year focused on the virtual reality (VR) technology, a new semiconductor packaging technology as well as the next generation of display strategies.

Bill lu said that in IC design industry, ubs securities bullish on China smartphones this year quantity demand will be higher than the market had expected, causes include mainland China is conducive to low mobile phone new tariffs subsidy policy, the international leading brand advanced intelligent mobile phone kinetic energy to slow this year, and a stable exchange rate, etc.

Bill lu, agreed that the stability of the chip, the average selling price is just a temporary phenomenon, ubs securities have yet to see significant changes of competition environment, and is expected to slowing demand and new vendors introduce competitive products, pricing pressures will emerge again.

For fabs, bill lu think in the coming years, overall demand will slow, but has a research and development of advanced science and technology and abundant resources market leader, is expected to further expand the city share and boost profits.

Bill lu, 8 inch wafer plant will maintain full load capacity, mainly driven by integrated circuit (IC), power management IC (PMIC) and the fingerprint sensor demand driven.

In terms of driver IC, bill lu, points out that the current trend is low order intelligent mobile phone can use low cost without memory (RAM - less) driver IC, the latter will continue to 8 inch wafer factory production. In addition, most of the PMIC and fingerprint sensors because of physical properties, should also maintain the 8 inches process.

For IC assembly and test, bill lu bullish on industry consolidation is expected to alleviate the pressure of the pricing and improve profits. Although the mainland investors worried that the positive expansion plans and pricing strategy will lead to price competition, but ubs securities analysis shows that for the market leader, in the past few years the pricing in fact quite rational.

Bill lu, however, think that China's competition situation had picked up, so far the price erosion condition is limited to the mainland market itself.