Top Ten Foundries Experience Impressive 7.9% Q3 Growth

The top ten foundries have seen a significant increase in revenues during the third quarter of this year, according to a report by TrendForce. The combined revenues of these companies grew by 7.9% to reach a total of $28.29 billion. The report also suggests that the growth rate could be even higher in the fourth quarter.

TSMC, the leading foundry with a market share of 58%, experienced a revenue growth of 10.2% in Q3, reaching an impressive $17.25 billion. The company's success can be attributed to the strong performance of its 3nm process, which contributed 6% to its Q3 revenue. Additionally, TSMC's advanced processes, including those ≤7nm, accounted for nearly 60% of its total revenue.

Samsung, another major player in the foundry market, witnessed a revenue growth of 14.1% in Q3, amounting to $3.69 billion. This growth was primarily driven by orders for Qualcomm's mid-to-low range 5G AP SoC, 5G modems, and mature 28nm OLED DDI processes.

GlobalFoundries, on the other hand, maintained a stable performance in Q3, with its revenue remaining at approximately $1.85 billion, similar to the previous quarter. This consistency indicates the company's ability to sustain its position in the market.

UMC, however, experienced a slight decline in revenue during Q3, with a decrease of 1.7% to $1.8 billion. Despite this overall decline, UMC saw a near 10% increase in revenue from its 28/22nm products, which accounted for 32% of its total revenue.

SMIC, a Chinese foundry, reported a 3.8% increase in Q3 revenue, reaching $1.62 billion. Interestingly, the revenue share from American clients decreased to 12.9%, while revenue from Chinese clients increased to 84%. This shift can be attributed to the Chinese government's localisation initiatives and the urgent orders for smartphone components.

Notable changes in the rankings from sixth to tenth position include VIS and IFS. VIS surpassed PSMC to take the eighth position with a Q3 revenue increase of 3.8% to $333 million. IFS, on the other hand, experienced a significant 34.1% increase in revenue, reaching approximately $311 million. These changes in rankings highlight the dynamic nature of the foundry market.

HuaHong, however, saw a 9.3% decrease in Q3 revenue, amounting to about $766 million. This decline can be attributed to a decrease in average selling price (ASP), despite steady wafer shipment levels from the previous quarter.

Tower Semiconductor, a foundry serving the smartphone, automotive, and industrial sectors, maintained a stable revenue of around $358 million in Q3. This stability can be attributed to the consistent demand in these sectors.

PSMC, unfortunately, witnessed a 7.5% drop in revenue to $305 million. The decline was primarily due to a decrease in revenue from PMIC and Power Discrete, which declined nearly 10% and 20% respectively, impacting the overall performance of the company.