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