New iPhone & Android Models Fuel Q3 Spike in Electronics Components
According to the latest statistical data from TrendForce, the third quarter of 2023 has witnessed a surge in urgent orders for components related to smartphones and laptops. This increase is attributed to several favorable factors, including the gradual normalization of end-terminal and Integrated Circuit (IC) customer inventory levels, as well as the launch of new iPhone and Android models in the latter half of the year.
Both Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung’s 3nm process nodes have made significant contributions to revenue, bringing positive effects to the industry. This has driven a 7.9% sequential increase in revenue for the top ten foundries in Q3 2023, reaching $28.29 billion.
TSMC, ranking first, benefited from replenished urgent orders for PC and smartphone components. Approximately 6% of its revenue this quarter was contributed by the 3nm process node, pushing the revenue share of advanced processes (7nm and below) to nearly 60%. Overall, TSMC’s revenue grew 10.2% sequentially to $17.25 billion. Samsung, in second place, achieved a 14.1% sequential revenue increase to $3.69 billion, bolstered by orders for Qualcomm’s mid-to-low-end Snapdragon 5G, Apple basebands, and 28nm OLED Display Driver Integration (DDI). GlobalFoundries, in third place, remained nearly flat compared to the previous quarter with around $1.85 billion. United Microelectronics Corporation (UMC), despite support from urgent orders, saw a 1.7% sequential decrease in revenue to approximately $1.8 billion. Semiconductor Manufacturing International Corporation (SMIC) also benefited from seasonal adjustments, mainly driven by smartphone urgent orders, leading to a 3.8% increase in revenue to $1.62 billion.
Among the sixth to tenth ranks, the most notable change was in Intel Foundry Services (IFS), which saw a significant leap in ranking and made its first appearance in the top ten list. Benefiting from seasonal notebook computer demand in the latter half of the year and contributions from advanced processes, IFS’s revenue increased by 34.1% sequentially to $310 million, placing it ninth.
Looking ahead to the fourth quarter, the momentum of urgent orders for smartphone and laptop supply chains is expected to continue, especially for the former, driven by the year-end shopping season. The revenue for the top ten foundries in Q4 2023 is anticipated to grow sequentially, with an increase exceeding that of the third quarter.
