A study on feasibility of capacity option issuing & circulating for semiconductor foundry industry

Facing the business and financial risk resulting form the fluctuation of capacity utilization in the volatile economy and rapidly-changing high-tech industry, we create the capacity option with the function of hedge to meet the needs of semiconductor capacity supplier and demander. The concept features pre-sell and pre-buy of the capacity. With pre-sell, the supplier could project demand and make proper investment. As the fixed asset in this industry is costly and the economic fluctuation reduces the profit, preventing the idling capacity becomes critical. Moreover, the capacity demander could avoid the risk of future uncertainty by fixing the price and needed capacity at an acceptable status.