The output value of the top 10 foundries dropped to 3.9% quarterly in 2022Q2

by ddos ·

As demand in the consumer electronics market continues to weaken, downstream distributors and brand manufacturers are under increasing inventory pressure. Although individual parts are still out of stock, the two-year general out-of-stock situation has ended, and major brand manufacturers have gradually stopped stocking in response to market changes. At present, there is stable demand for automobiles and industrial equipment, which supports the continuous growth of output value.

TrendForce released a new survey report showing that in the second quarter of 2022, the output value of the top ten foundries reached $33.2 billion, but the quarter-on-quarter growth rate has dropped to 3.9%. After entering the third quarter of 2022, the inventory adjustment will be in full swing, and the reduction of LDDI/TDDI and TV chip orders will increase and extend to non-Apple smartphone AP, PMIC, CIS, and low-end MCU will affect the capacity utilization rate of the foundry, but the new iPhone will inject momentum into the sluggish market to a certain extent.

Benefiting from strong demand for high-performance computing, the Internet of Things, and automotive chips, TSMC posted revenue of $18.15 billion in the second quarter of 2022, although the quarter-on-quarter growth has slowed to 3.5%. As NVIDIA, AMD, and other HPC customers roll out new products using more advanced process nodes, its 4nm/5nm process revenue increased by about 11.1% month-on-month, and the 6/7nm process revenue growth fell to 2.8% due to unclear market conditions and customer modification orders.

Samsung’s production capacity has gradually shifted to a 4nm/5nm process, and the improvement in yield rate has contributed to the growth of foundry revenue. Its revenue was $5.59 billion, an increase of 4.9% month-on-month; UMC’s new 22nm/28nm production capacity came online in the second quarter of 2022, bringing its revenue to $2.45 billion, an increase of 8.1% quarter-on-quarter; GlobalFoundries benefited from the release of new capacity and long-term agreements for most of the capacity, with revenue reaching $1.99 billion in the second quarter of 2022, an increase of 2.7% quarter-on-quarter; SMIC’s revenue in the second quarter of 2022 was $1.9 billion, up 3.3% sequentially.

The general revenue of second- and third-tier wafer foundries still has a small increase, but the performance is expected to reach its peak. Based on the current market trend, the capacity utilization rate in the second half of 2022 is likely to decline, thereby affecting revenue.

Tags: SamsungTSMC