Core Viewpoint - The article discusses the evolving landscape of global wafer fabrication plants, highlighting China's increasing market share in the 12-inch mature process wafer foundry sector, projected to reach 47% by 2027 from 29% in 2023 [1]. Group 1: Market Share and Growth Projections - China's share of the global 12-inch mature process wafer foundry market is expected to grow from 29% in 2023 to 47% by 2027, with an annual capacity growth rate of 27% from 2024 to 2027 [1]. - The global wafer fabrication industry is projected to see a total of 128 new fabs built from 2019 to 2024, with China accounting for 30% of these [2][3]. - The global pure wafer foundry market is expected to grow from $32.257 billion in 2023 to $47.271 billion by 2027, with a CAGR of 10% [12]. Group 2: Capacity Utilization and Competitive Landscape - In Q3 2024, SMIC and Hua Hong's capacity utilization rates were 90% and 105%, respectively, while UMC's was only 71%, indicating a competitive edge for Chinese foundries [7]. - The global 12-inch mature process capacity utilization is expected to remain between 73% and 75% from 2024 to 2027, with specific nodes like 28nm maintaining high utilization due to limited competition [13]. Group 3: Cost Analysis and Competitive Advantages - Chinese wafer foundry companies have a significant cost advantage in labor, with average salaries in mainland China at 240,900 RMB compared to 435,800 RMB in Taiwan, representing a 80.9% difference [8]. - The cost structure of wafer foundry companies shows that labor costs account for approximately 15.7% of total costs, allowing Chinese firms to maintain a competitive edge [8]. Group 4: Supply Chain and Material Localization - The domestic semiconductor materials sector is still in its early stages of localization, with 12-inch silicon wafer localization at only 10% as of 2022 [10]. - The logistics and energy supply systems in mainland China are mature, leading to lower operational costs compared to some overseas regions, although fixed facility costs have a limited impact on overall product costs [10].