Globalfoundries has recently sold off several fabs along with its chip business in return for capital and commitments from buyers to continue placing orders. However' AMD's decision to move to TSMC prompted the end of Globalfoundries endeavours at 7nm and the leading edge. The result is likely to be continued erosion of Globalfoundries' revenue. Subseuently Globalfoundries has initiated a law suit against TSMC (see GloFo takes TSMC to court over process patents).
UMC was able to raise shipment levels and manufacturing capacity utilization in 2Q19 but its business is now behind the leading edge and is seeing strong pricing pressure. UMC is expected to maintain revenue growth in 3Q19, TrendForce said.
The situation is similar for SMIC with strong revenue generation from 65/55nm and 45/40nm processes in 2Q19. The company has a 28nm bulk CMOS process and is developing its own 14nm process. Chinese government policy could push domestic IC design firms such as HiSilicon and Unisoc to allocate some of their requirement to SMIC, but this can only be done of SMIC achieves world-class yields.
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