In 2023Q1, the revenue of the top ten wafer foundries decreased by 18.6% from the previous quarter

According to the latest statistical data from TrendForce, the combined effects of sustained weakness in end-user demand and off-season downturns led to declines in capacity utilization and shipments for the top ten semiconductor foundries in the first quarter of 2023. Quarterly revenue dropped by 18.6% quarter-on-quarter to approximately $27.3 billion. In this quarter, GlobalFoundries overtook United Microelectronics Corporation (UMC) to claim third place, while Tower Semiconductor surpassed Powerchip Semiconductor Manufacturing Corp (PSMC) and Vanguard International Semiconductor (VIS), seizing seventh place.

Taiwan Semiconductor Manufacturing Company (TSMC) earned a revenue of $16.74 billion in Q1 2023, reflecting a 16.2% decline from the previous quarter, driven by sales of mainstream consumer products such as laptops and smartphones. The utilization rate of 6/7nm and 4/5nm production capacity significantly decreased, with corresponding revenues dropping by 20% and 17% respectively. Despite the demand for emergency orders in the second quarter, the overall capacity utilization rate remained unsatisfactory, and revenue is expected to decline further, though at a narrower margin.

Samsung saw a decrease in the utilization of its 8-inch and 12-inch production capacities. Revenue for Q1 2023 stood at merely $3.45 billion, down 36.1% quarter-on-quarter, marking the largest decline among the top ten. However, the second quarter will benefit from new orders for some 3nm products, and the decline in revenue is expected to slow. In Q1 2023, GlobalFoundries garnered $1.84 billion in revenue, a 12.4% decline from the previous quarter. Thanks to orders from the U.S. government, operations remained stable, enabling it to surpass UMC and become the third largest. The capacity utilization rate and revenue for the second quarter are expected to be roughly on par with the first quarter.

UMC’s revenue in Q1 2023 fell 17.6% quarter-on-quarter to $1.78 billion. Revenue from the 22/28nm and 40nm products fell more than 20%, while the capacity utilization rate of 8-inch wafers fell below 60% and that of 12-inch wafers hovered around 80%. Revenues for the second quarter are expected to remain stable or increase slightly. Semiconductor Manufacturing International Corporation (SMIC) posted approximately $1.46 billion in revenue for Q1 2023, a 9.8% decrease quarter-on-quarter. Revenue from 8-inch wafers fell by nearly a third, while 12-inch wafer revenues saw a slight increase. Shipments, revenue, and capacity utilization are all expected to increase in the second quarter.

TrendForce anticipates that the revenue of the top ten semiconductor foundries will continue to decline in the second quarter of 2023, albeit at a slower rate. Although the peak season for the second half of the year is fast approaching, and manufacturers typically begin stockpiling in the second quarter, this year’s unfavorable conditions and slow inventory depletion have resulted in most clients adopting a cautious stance. Occasional rush orders have made only limited contributions to overall growth.