TSMC Solidifies Management on Foundry Market as Intel Jumps into Prime 10
The worldwide foundry business witnessed a considerable rise in demand within the third quarter of 2023, in response to TrendForce. The Prime 10 foundries collectively noticed their income soar to about $28.29 billion, marking a 7.9% enhance in comparison with the earlier quarter. Taiwan Semiconductor Manufacturing Co. (TSMC) maintained its No. 1 place because it managed to extend its shipments, whereas Intel Foundry Companies discovered itself in Prime 10 for the primary time within the current quarters.
TSMC, the world’s largest foundry, posted income of $17.249 billion for the third quarter of calendar 2023 and secured a 57.9% foundry income market share. TrendForce believes that TSMC’s progress was supported by strong demand throughout varied sectors, together with PCs and smartphones. Some of the notable drivers of TSMC’s income was the formal begin of Apple’s 3nm chips shipments (or moderately income recognition) within the third quarter. With Apple’s A17 Professional smartphone system-on-chip in addition to M3, M3 Professional, and M3 Max PC SoCs transport in excessive quantity, 3nm fabrication expertise accounted for six% of TSMC’s whole income for the quarter, whereas superior nodes accounted for nearly 60% of TSMC’s gross sales.
Samsung Foundry additionally had a fruitful quarter, experiencing a 14.1% progress in its income, which amounted to $3.69 billion, in response to TrendForce. Samsung itself says that demand for its superior course of applied sciences is rising (which is a probable situation), however TrendForce appears to be a bit extra cautious because it says that progress drivers for Samsung have been various and included orders for Qualcomm’s mid-to-low vary 5G software processors, 5G modems, and time-proven 28 nm OLED show driver ICs.
GlobalFoundries maintained a constant efficiency, with its income hovering round $1.85 billion, much like the earlier quarter. A good portion of its income got here primarily from the Web of Issues (IoT) market, significantly in dwelling and industrial sectors, and important orders from the U.S. aerospace and protection sectors, in response to TrendForce.
UMC skilled a blended quarter. Regardless of a marginal quarterly income lower of 1.7%, bringing it to round $1.8 billion, the corporate noticed a notable uptick in its 28/22 nm product traces. This close to 10% enhance in income from these merchandise offset the slight decline in general wafer shipments.
SMIC, however, recorded a 3.8% enhance in its income, which stood at $1.62 billion for Q3. Nonetheless, the corporate confronted a shift in its consumer base: income from Chinese language shoppers surged to 84%, buoyed by the federal government’s push for localization and pressing orders for smartphone elements. Against this, income from American shoppers diminished as a consequence of provide chain diversification and the relocation of American prospects exterior China. What’s a bit shocking is that though SMIC ramped up shipments of Huawei’s Kirin 9000S system-on-chip (SoC) in Q3, this didn’t have an effect on its income considerably. Maybe, as a result of Chinese language firms ordered principally cheaper chips than their American counterparts, income from shipments of 7nm merchandise was offset by shipments of huge volumes of cheap silicon.
What is especially noteworthy is that Intel Foundry Companies obtained into the Prime 10 foundries for the primary time in a number of quarters. IFS earned $311 million in income in Q3 2023, up 34.1% quarter-over-quarter, which could possibly be a results of the corporate’s working with Amazon Net Companies, which ramped up manufacturing and meeting of its Graviton4 and Trainium2 system-in-packages that require superior packaging applied sciences.
Generally, international foundry business is on an upward trajectory, led by TSMC, Samsung, SMIC, and IFS. Smaller and specialty foundries — equivalent to Tower Semiconductor and Vanguard Worldwide — demonstrated blended outcomes. Tower’s revenues elevated 0.3% QoQ, which is principally flat, whereas VIS posted a 3.3% quarter-over-quarter enhance.
Against this, HuaHong Group skilled a 9.3% quarter-over-quarter downturn, with its Q3 income falling to roughly $766 million. PowerChip Semiconductor Manufacturing Co. (PSMC) additionally noticed its income lower by 7.5% to $305 million, largely as a consequence of practically 10% and 20% declines within the revenues from PMIC and energy discrete merchandise, respectively, which affected its general efficiency, in response to TrendForce.
TrendForce expects continued demand because the business strikes into the fourth quarter, particularly when it comes smartphone elements, which is a big market that requires each modern and pretty simplistic chips.
Supply: TrendForce
