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Fourth-ranked GlobalFoundries posted a revenue of US$1.52 billion for 2Q21 ... in 2019, GlobalFoundries has been gradually consolidating its ... PressCenter Home PressCenter FoundryRevenuefor2Q21ReachesHistoricalHighOnceAgainwith6%QoQGrowthThankstoIncreasedASPandPersistentDemand,SaysTrendForce 31August2021 Semiconductors JoanneChiao Thepanicbuyingofchipspersistedin2Q21owingtofactorssuchaspost-pandemicdemand,industry-wideshiftto5Gtelecomtechnology,geopoliticaltensions,andchronicchipshortages,accordingtoTrendForce’slatestinvestigations.ChipdemandfromODMs/OEMsremainedhigh,astheywereunabletomeetshipmenttargetsforvariousend-productsduetotheshortageoffoundrycapacities.Inaddition,wafersinputtedin1Q21underwentapricehikeandweresubsequentlyoutputtedin2Q21.FoundryrevenueforthequarterreachedUS$24.407billion,representinga6.2%QoQincreaseandyetanotherrecordhighfortheeighthconsecutivequartersince3Q19. RevenuegrowthsofTSMCandSamsungwereslightlyhinderedbypoweroutagesattheirrespectivefabs For2Q21,TSMConceagaincomfortablydwarfedotherfoundrieswitharevenueofUS$13.3billion,a3.1%QoQincrease.TSMC’srelativelymutedgrowthcanbeattributedtoseveralfactors,themostprominentofwhichwasapoweroutagethatoccurredinTSMC’sFab14P7,locatedintheSouthernTaiwanSciencePark,inApril.Thepoweroutagesubsequentlycausedsomewafersatthe40nmand16nmnodestobediscarded.TSMC’sfabintheSouthernTaiwanScienceParksufferedyetanotherdisruptionwhenTaipower’sKaohsiung-basedHsintaPowerPlanttemporarilywentofflineinMay.Althoughthefabimmediatelyresumedoperationsviaitsemergencypowergeneratorssothatnowafersintheproductionlineswerediscarded,certainwafersstillneededtobereworked.Finally,TSMCmaintaineditslongstandingstrategyofgivingconsistentpricequotesforitsfoundryservices.Hence,althoughthefoundry’srevenuefor2Q21exceededtheupperendofitspriorfinancialguidance,itsrevenueforthequarterunderwentaslightlylowerQoQgrowthcomparedtootherfoundries,anditalsolostsomemarketsharetocompetitors. Samsung’srevenuefor2Q21reachedUS$4.33billion,a5.5%QoQincrease.AfterrecoveringfromthewinterstormthatsweptTexasinFebruary,Samsung’sAustin-basedLineS2fabfullyresumeditsmanufacturingoperationsinApril.Thefabisnowoperatingatfullyloadedcapacitiesbymanufacturingforadditionalclientordersinordertocompensateforthe1.5-monthlossinwaferinputfromidlingasaresultofthewinterstorm.Althoughthesharpdropinwaferinputin1Q21somewhatconstrainedSamsung’soutputandrevenuegrowthfor2Q21,thefoundrystillmanagedtoposta5.5%QoQrevenuegrowththankstostrongclientdemandforCIS,5GRFtransceivers,andOLEDdriverICs.OwingtopersistentlyhighdemandforPMIC,TDDI,Wi-Fi,andOLEDdriverICproducts,UMC,rankedthirdonthetop10list,operatedatacapacityutilizationratesurpassing100%,anditsoutputseverelylaggedbehindclientdemand.Inresponse,UMCcontinuedtoraiseitsquotes.Inaddition,newlyinstalledproductioncapacitiesatthe28/22nmnodes,whichhavearelativelyhighASP,graduallybecameavailableforwaferinputin2Q21,resultingina5%QoQincreaseinUMC’sblendedASPfor2Q21.Thefoundrysawitsmarketshareremainingrelativelyunchangedfromthepreviousquarterat7.2%andpostedarevenueofUS$1.82billion,an8.5%QoQincrease. Fourth-rankedGlobalFoundriespostedarevenueofUS$1.52billionfor2Q21,a17.0%QoQincrease.AftersellingitsUS-basedFab10andSingapore-basedFab3EtoONSemiandVIS,respectively,in2019,GlobalFoundrieshasbeengraduallyconsolidatingitsexistingproductlinesandfocusingonthedevelopmentof14/12nmFinFET,22/12nmFD-SOI,and55/40nmHVandBCDtechnologyplatforms.Atthesametime,GlobalFoundrieshasalsoannouncedthatitwillexpanditscurrentproductioncapacitiesbybuildingnewUS-basedandSingapore-basedfabs,whichareexpectedtocontributetoGlobalFoundries’earningsstartinginthe2H22-2023period.Ontheotherhand,althoughGlobalFoundrieshasalreadysolditsFab10toONSemi,theformercontinuestomanufactureproductsforthelatteratFab10acrossthe2020-2021period.ONSemiwillnotindependentlyoperatethefabuntilthetransferofownershipisfinalizedin2022.SMIClikewisegrewitsrevenuefor2Q21byaremarkable21.8%toUS$1.34billionandraiseditsmarketshareto5.3%.SMIC’sgrowthtookplaceduetostrongclientdemandforvarioustechnologiesincluding0.15/0.18µmPMIC,55/40nmMCU,RF,HV,andCIS,aswellasacontinuedincreaseinitsASP.Owingtobetter-than-expectedadoptionofits14nmtechnologybynewclients,SMICisoperatingatafullyloadedcapacityof15Kwspmatthemoment. WhileVISleapfroggedToweronthetop10list,HuaHongGroup,inclusiveofsubsidiariesHHGraceandHLMC,tooksixthplace HuaHongGroupsubsidiariesHHGraceandHLMChavebeenoperatingFab1/2/3/7andFab5/6,respectivelyandsharingcertainmanufacturingresources.Hence,TrendForcewillfromnowoncombinethetwosubsidiaries’revenuesintoasingleitem,listedasHuaHongGroup.Inparticular,capacityexpansionatHHFab7,operatedbyHuaHongWuxi,proceededaheadofexpectations,withclientdemandforNORFlash,CIS,RF,andIGBTproductsremainingstrong.NotonlyisHHFab7’sproductioncapacityof48Kwspmcurrentlyfullyloaded,butHuaHongGroup’s8-inchfabshaveallbeenoperatingatacapacityutilizationrateofmorethan100%.Thankstoa3-5%QoQincreaseinHuaHongGroup’sblendedASPfor8-inchwafers,HuaHongGroup’srevenuefor2Q21reachedUS$658million,a9.7%QoQincrease,placingthefoundrysquarelyinthenumbersixspot. AfterleapfroggingTowerintherevenuerankingsin1Q21forthefirsttimeever,PSMCmaintaineditsstronggrowthin2Q21partiallyowingtocontinuedwaferstartsforspecialtyDRAM,DDI,CIS,andPMICinitsP1/2/3fabs.Atthesametime,therewasamassivehikeindemandforautomotivechips,suchasIGBT,manufacturedatPSMC’sFab8AandFab8B.InviewofquarterlyincreasesinPSMC’soverallASP,thefoundrypostedUS$459millioninrevenuefor2Q21,an18.3%QoQincrease,andtooktheseventhspotintherankings.VISbenefittedfromahostoffactorsin2Q21,includingpersistentdemandforDDI,PMIC,andpowerdiscretes;newlyinstalledcapacitiesintheSingapore-basedFab3Ereadyforproduction;adjustmentsinthefoundry’sproductmix;andanoverallASPhike.VIS’revenuefor2Q21reachedUS$363million,whichrepresentednotonlyan11.1%QoQincrease,butalsothefirsttimeVISovertookTowerintermsofrevenue. Althoughninth-rankedTowerbenefittedfromstabledemandforRF-SOIproducts,industrialPMIC,andautomotivePMIC,thefoundry’snewlyinstalledcapacitieswerenotentirelyreadyformassproduction,anditsrevenuethereforeunderwentamodest4.3%QoQincreasefor2Q21toUS$362million.Ontheotherhand,DBHiTekhadbeenoperatingatfullyloadedcapacitiesformorethan18months.WhileclientdemandforPMIC,MEMS,andCISproductsmanufacturedwith8-inchwafersmadeconsistentcontributionstothefoundry’searnings,mostofDBHiTek’srevenuegrowthfor2Q21tookplaceduetotheriseinitsASP.DBHiTek’srevenuefor2Q21reachedUS245million,a12.0%QoQincrease. Asof3Q21,theshortageoffoundrycapacitiesthatbeganin2H19haspersistedandintensifiedfornearlytwoyears.Althoughnewlyinstalledcapacitiesfromcertainfoundrieshavebecomegraduallyavailableforproduction,theincreaseinproductioncapacityhasbeenrelativelylimited,andtheseadditionalcapacitieshavebeenfullybookedbyclients,asindicatedbyTrendForce’sinvestigationintoordersplacedbyfoundryclients.Allmajorfoundriescurrentlyoperateatfullyloadedcapacities,thoughtheirproductionstilllagsbehindmarketdemand.Furthermore,waferinputsforautomotivechipshavebeenskyrocketingsince2Q21duetomajorpushesbygovernmentsworldwide,inturnconstrainingtheavailableproductioncapacitiesforotherchips.Asaresult,foundriesarecontinuingtoraisetheirblendedASPsandadjustingtheirproductmixesinordertofurtheroptimizeprofits.TrendForcethereforebelievesthatthecombinedrevenuesofthetop10foundrieswillreacharecordhighin3Q21byundergoingawiderQoQgrowthcomparedto2Q21. FormoreinformationonreportsandmarketdatafromTrendForce’sDepartmentofSemiconductorResearch,pleaseclickhere,oremailMs.LatteChungfromtheSalesDepartmentatlattechung@trendforce.com ForadditionalinsightsfromTrendForceanalystsonthelatesttechindustrynews,trends,andforecasts,pleasevisitourblogathttps://insider.trendforce.com/ PreviousArticle DRAMModuleRevenueUndergoes5%YoYGrowthfor2020,withVaryingPerformancesAmongSuppliers,SaysTrendForce NextArticle NANDFlashRevenuefor2Q21Risesby10.8%QoQDuetoStrongNotebookDemandandProcurementsforDataCenters,SaysTrendForce Subject PressReleases SubscribetoNewsletters AttributionGuide RSSSubscription In-DepthAnalyses Infographics Videos RelatedArticles 3Q21RevenueofGlobalTop10ICDesign(Fabless)CompaniesReachUS$33.7billion,FourTaiwaneseCompaniesMakeList,SaysTrendForce 2021.12.16 NANDFlashASPExpectedtoUndergo10-15%QoQDeclinein1Q22asMarketShiftsTowardsOversupply,SaysTrendForce 2021.12.15 DRAMASPExpectedtoDeclineby8-13%QoQin1Q22OwingtoSeasonalDemandDownturn,SaysTrendForce 2021.12.13 RelatedReports DRAMContractPrice2HOct.2019 2019.10.31 ServerDIMMPriceOct.2019 2019.10.31 SpecialtyDRAMPriceOct.2019 2019.10.31