TrendForce: Top 10 Foundries' Revenue Hits All-Time High

GlobalFoundries posted a QoQ drop of 16% in its revenue to US$1.3 billion for 1Q21. As GlobalFoundries had formally handed over its Fab3E (an 8- ... Continuetosite Skiptocontent HomeNewsAnalysisBusiness-FinanceFeaturedBlogsDistributionSupplyChainComponentSourcingBuyingStrategiesHotProductsIndustriesResourcesTopCompaniesIndustryDirectoriesEBNOnline TrendForce:Top10Foundries’RevenueHitsAll-TimeHighYouarehere:HomeNewsAnalysisBusiness/FinanceTrendForce:Top10Foundries’Revenue… June1,2021 Leaveacomment Business/Finance,ComponentSourcing,NewsAnalysis, ByNewsDesk byWithIntelCorp.predictingthatthechipshortagecouldlastyears,foundries—andchipmakers—areinapositiontoincreaseprices.TrendForcereportsvariousfoundriesareraisingtheirwaferpricesandadjustingtheirproductmixestoensureprofitability. BackinMarch,Intelannouncedplanstoinvest$20billioninU.S.chipfacilitiesanditspushtobecomeaglobalfoundryplayer. Despitetheresultfor4Q20beingahighbaseforrevenuecomparisonandpoweroutageincidentsatsomefabsites,thequarterlytotalrevenueofthetop10globalfoundriesroseby1%QoQtoarecordhighofUS$22.75billionin1Q21. SamsungandGlobalFoundriespostedarevenuedropfor1Q21duetopoweroutageandfabsales,respectively Therankingoffoundriesbyrevenuefor1Q21showsthatTSMCmaintaineditsfirstplacepositionwithaquarterlyrevenueofUS$12.9billion,a2%increaseQoQ.TSMC’smainrevenuedrivershavebeenits7nmand16/12nmnodes.Therevenuefromthe7nmfoundryservicehaskeptclimbingatastablepacethankstoordersfromAMD,MediaTek,andQualcomm,registeringaQoQincreaseof23%for1Q21.Therevenuefromthe16/12nmfoundryservicehasalsogrownonaccountofthedemandrelatedtoMediaTek’s5GRFtransceiversandBitmain’scryptocurrencyminingmachines,registeringaQoQincreaseofnearly10%for1Q21.Therevenueproducedbythe5nmnode,whichiscurrentlyunderthemarketspotlight,underwentaquarterlydecreasemainlybecauseAppleasthelargestclientforthe5nmfoundryserviceenteredtheoff-seasonfordeviceproduction. SamsungpostedasmallQoQdropof2%initsfoundryrevenuefor1Q21toUS$4.11billion.ThisFebruary,afreakwinterstorminTexascausedpoweroutagesinAustinandforcedSamsungtotemporarilyshutdownitsfabLineS2thatwaslocatedinthevicinity.LineS2finallyreturnedtonormaloperationatthestartofApril.ThesuspensionofwaferinputatthefabforalmostawholemonthcausedSamsungtobecomeoneoftheveryfewfoundriesthatpostedarevenuedropfor1Q21.UMCmaintainedafullyloadedcapacityin1Q21thankstotherobustdemandforPMICs,TDDI,OLEDDDIs,CIS,andWi-FiSoCs.Itsshipmentswerealsofairlybrisk.Owingtotheundersupplysituation,UMCraisedprices,therebycausingitsrevenuetojump5%QoQtoUS$1.68billionfor1Q21. GlobalFoundriespostedaQoQdropof16%initsrevenuetoUS$1.3billionfor1Q21.AsGlobalFoundrieshadformallyhandedoveritsFab3E(an8-inchwaferfab)inSingaporetoVIS,Fab3EstoppedgeneratingrevenueforGlobalFoundrieswithrespecttofulfillingtheordersrelatedtolasttimebuyorbacklogin1Q21.Hence,GlobalFoundriesbecameanotheroneoftheveryfewfoundriesthatpostedadropinrevenuefor1Q21.SMICraiseditsrevenueby12%toUS$1.1billionfor1Q21.ThegrowthwasmainlyattributedtothesubstantialincreaseinwaferinputatthefoundryfromQualcommandMPS.Specifically,therewasstrongdemandforPMICsmadewiththefoundry’s0.15/0.18µmnodesandforRFchips,MCUs,andWi-Fichipsmadewiththefoundry’s40nmnode.ThewaferinputalsorosenoticeablyforDDIsmadewithSMIC’s40/28nmHVprocesstechnology.Atthemoment,SMIChasbeenoperatingnormallyasbeforeinallrespectsbecauseithadbuiltaveryhighlevelofinventoryforproduction-relatedmaterialsandequipmentpartsbeforeitwasplacedontheEntityListlastyear. PSMCovertookTowerinquarterlyrevenueforthefirsttimewhiletotalrevenueofthetop10foundriesareexpectedtoreachanewhistoricalhighin2Q21 OwingtorisingASPandhighdemandforPSMC’s12-inchwaferfoundryservicefromclientsthatinputwafersforspecialtyDRAM,DDIs,CIS,andPMICs,PSMC’srevenuefor1Q21roseby14%QoQtoUS$388million,surpassingTowerforthefirsttime.AsforTower,itsperformancein1Q21wasrelativelyonparwiththeresultfor4Q20,registeringaQoQincreaseofabout1%toUS$347million.ThemainandstabledemanddriversforTowerhavebeenproductsmadewiththeRF-SOIprocess,semiconductorcomponentsforindustrialapplications,andPMICsforautomotiveapplications.TowerplanstoinvestanextraUS$150millionthisyeartoexpanditsproductioncapacitybyamarginalamount,andthenewlyaddedcapacityisexpectedtobeactivatedin2H21.VISpostedrevenuegrowthfor1Q21owingtotherecoveringdemandforlarge-sizeDDIs,PMICs,andautomotivechips.ItalsobenefitedfromtherisingASP.Itsrevenuegrewby7%QoQtoUS$327million. HHGraceraiseditsrevenueby9%QoQtoUS$305millionfor1Q21.ThegainwasmainlyattributedtotherisingdemandfromclientsthatsupplyNORFlash,CIS,MCUs,andIGBTs.The8-inchwaferproductioncapacityofthefoundryisfullyloadedonaccountofstabledemand.WhilecapacityexpansionofHHGrace’s12-inchwaferfabhasbeentakingplaceaheadofschedule,thecapacityutilizationrateofHHGrace’s12-inchwaferfabinWuxiisalsorisingrapidlyasthefabissuccessfullyproceedingwiththemassproductionofspecialtyICsandotherproducts.HLMC’srevenuefellby2%QoQtonearlyUS$300millionfor1Q21.Onthetechnologyfront,HLMCisnowdevelopingits14nmnode,buttheprocessisstillinthequalityacceptancephase.Thefoundrystillmainlygeneratesrevenuewithits65/55nmnodes. ItshouldbenotedthatHHGraceandHLMC,whichcameto9thand10threspectivelyintherankingfor1Q21,belongtoHuaHongGroup.Iftherevenuesofthetwocompaniesarecombinedtogether,thenHuaHongGroupwouldhaveproducedaroundUS$600millioninfoundryrevenuefor1Q21,givingit6thplaceintheranking.IfHuaHongGroupislistedintheranking,thenDBHitekwouldfillinthe10thplace.DBHitek’s8-inchwaferfoundrybusinesshasbenefitedfromthestabledemandforPMICs,MEMS,andCIS.ItswaferASPhasalsorisenslightly.For1Q21,DBHitekpostedaQoQgrowthof7%initsrevenuetoUS$219million.Thefoundrycurrentlyhasnoplantofurtherexpanditsalreadyfully-loadedproductioncapacity,soitsfuturerevenuegrowthwillbelimitedasitwillbemainlydrivenbytheriseintheASP. Withfoundrycapacityshortageexpectedfor2Q21,TrendForcebelievestheriseinwaferpriceswillinturnfurthercontributetorevenuegrowth.Thisisattributedtothefactthat,whilefoundrieshavenotbeenundertakingsignificantcapacityexpansionsduring1H21,therehasbeenstrongdemandformosttypesofcomponentsin2Q21,meaningfoundrieswillmaintainfullyloadedcapacitiesgoingforward.Ontheotherhand,governmentsofsomecountrieshavedirectlyrequestedfoundriestoprioritizeautomotivechipsinschedulingproduction.Thiswillfurthertightenthefoundrycapacityallocatedtochipsbelongingtoother,non-automotiveapplications.Onthewhole,TrendForceexpectsthequarterlytotalrevenueofthetop10foundriestoonceagainreachahistoricalhighbyundergoinga1-3%increaseQoQin2Q21. Tags: AutomotiveElectronicComponentsElectronicsfabsFoundriesmanufacturingSemiconductorSemiconductorsSupplyChainTrendForce Author: NewsDesk NewsDesk PostnavigationPreviousPreviouspost:NorthAmericanEMSShipmentsup10.5%NextNextpost:FactoryActivityRisesDespiteSupply&LaborConstraintsRelatedpostsSpecialReport:NavigatingaCoursetotheSupplyChain’s‘NewNormal’December16,20216WaysDigitizationIsImpactingtheManufacturingIndustryDecember16,2021Don’tUnderestimatethePassivesShortageDecember16,2021ChipCapextoGrow34%in2021toReachRecord$152BillionDecember14,2021HowCanCompaniesCombattheElectronicComponentsShortage?December14,2021Manufacturers’Capex&RevenuetoExpandin2022December13,2021 LeaveaReplyCancelreplyYouremailaddresswillnotbepublished.Requiredfieldsaremarked*CommentName* Email* Website Savemyname,email,andwebsiteinthisbrowserforthenexttimeIcomment. Postcomment Δ ThissiteusesAkismettoreducespam.Learnhowyourcommentdataisprocessed. 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