TSMC takes market from Samsung, GloFo, but Covid-19 impact to come
The biggest success in the top ten foundries was market leader TSMC which continued to take market share from its closest competitors Samsung and Globalfoundries. Other successful companies included Powerchip Semiconductor Manufacturing Corp. (PSMC) and United Microelectronics Corp. both also of Hsinchu in Taiwan.
TrendForce reckons the foundry industry overall benefitted from clients stockpiling chips (see Despite Covid-19, foundries’ business boomed in February).
Poor performers year-on-year included Tower Semiconductor Ltd. and Hua Hong.
Now the whole of the foundry market will face a challenge, as the Covid-19 pandemic has caused a reduction in the demand for end products. The impact on foundries is expected to come in 2Q20, the market research firm said.
Ranking of top ten foundry suppliers by estimated revenue for 1Q20 in millions of dollars. Source: TrendForce.
TrendForce said that strong demand for TSMC’s 7nm manufacturing process will keep production full utilized even after slow down in orders. Even at 12nm/16nm TrendForce expects TSMC to maintain about 90 percent level of 12/16nm capacity utilization going forward. On the other hand, TSMC’s production capacities of mature process nodes and special technology are currently fulfilling the demands for 5G, IoT, and automotive products, which contribute to its steady revenue stream.
Samsung is attempting to raise revenue from 8nm extreme ultraviolet process technology but domestic market demand is likely to fall due to the coronavirus pandemic. This is projected to affect Samsung’s 1Q20 revenue.
Next: Globalfoundries
Globalfoundries divestment of its Singapore fab to VIS is expected to have a direct impact on its 1Q20 revenue (see GloFo sells MEMS business, fab to Taiwan’s Vanguard). Meanwhile UMC is expected to see quarterly gains in its capacity utilization rate, in turn registering a minor QoQ increase in 1Q20 revenue due to gains in capacity utilization rate and new clients for its Japanese wafer fab.
SMIC is benefitting from increasing demand in the domestic Chinese market for CMOS image sensors, power management ICs, fingerprint sensors, TrendForce said.
PSMC and VIS both profited from the increased demand for CMOS image senses and display driver ICSs and from clients’ increased stocking. VIS’ revenues will include those generated from its Singapore-based Fab 3E, purchased from GlobalFoundries.
However, as the pandemic rolls across Europe and the United States it will dent the economy and diminish the global market’s purchasing and this is expected to be impact 2Q20.
Related links and articles:
News articles:
Despite Covid-19, foundries’ business boomed in February
Tower drops Jazz, embraces analog
Tower takes revenue hit in Panasonic extension
GloFo sells MEMS business, fab to Taiwan’s Vanguard
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