The international foundry market saw a significant increase in need in the 3rd quarter of 2023, according to TrendForce. The Leading 10 foundries jointly saw their profits skyrocket to about $28.29 billion, marking a 7.9% boost compared to the previous quarter. Taiwan Semiconductor Production Co. (TSMC) kept its No. 1 position as it handled to increase its deliveries, whereas Intel Foundry Solutions discovered itself in Leading 10 for the very first time in the current quarters.
TSMC, the world’s biggest foundry, published profits of $17.249 billion for the 3rd quarter of calendar 2023 and protected a 57.9% foundry profits market share. TrendForce thinks that TSMC’s development was supported by robust need throughout different sectors, consisting of PCs and mobile phones. Among the most noteworthy motorists of TSMC’s profits was the official start of Apple’s 3nm chips deliveries (or rather profits acknowledgment) in the 3rd quarter. With Apple’s A17 Pro smart device system-on-chip in addition to M3, M3 Pro, and M3 Max PC SoCs shipping in high volume, 3nm fabrication innovation represented 6% of TSMC’s overall profits for the quarter, whereas innovative nodes represented practically 60% of TSMC’s sales.
Samsung Foundry likewise had a rewarding quarter, experiencing a 14.1% development in its profits, which totaled up to $3.69 billion, according to TrendForce. Samsung itself states that need for its innovative procedure innovations is increasing (which is a most likely circumstance), however TrendForce appears to be a bit more careful as it states that development motorists for Samsung varied and consisted of orders for Qualcomm’s mid-to-low variety 5G application processors, 5G modems, and time-proven 28 nm OLED display screen motorist ICs.
GlobalFoundries kept a constant efficiency, with its profits hovering around $1.85 billion, comparable to the previous quarter. A substantial part of its profits came generally from the Web of Things (IoT) market, especially in home and commercial sectors, and substantial orders from the U.S. aerospace and defense sectors, according to TrendForce.
UMC experienced a blended quarter. In spite of a limited quarterly profits reduction of 1.7%, bringing it to around $1.8 billion, the business saw a noteworthy uptick in its 28/22 nm line of product. This near 10% boost in profits from these items balance out the minor decrease in general wafer deliveries.
SMIC, on the other hand, taped a 3.8% boost in its profits, which stood at $1.62 billion for Q3. Nevertheless, the business dealt with a shift in its customer base: profits from Chinese customers rose to 84%, buoyed by the federal government’s push for localization and immediate orders for smart device elements. By contrast, profits from American customers reduced due to provide chain diversity and the moving of American consumers outside China. What is a bit unexpected is that although SMIC increase deliveries of Huawei’s Kirin 9000S system-on-chip (SoC) in Q3, this did not impact its profits considerably. Maybe, due to the fact that Chinese business purchased primarily more affordable chips than their American equivalents, profits from deliveries of 7nm items was balanced out by deliveries of big volumes of low-cost silicon.
What is especially notable is that Intel Foundry Solutions entered into the Leading 10 foundries for the very first time in numerous quarters. IFS made $311 million in profits in Q3 2023, up 34.1% quarter-over-quarter, which might be an outcome of the business’s dealing with Amazon Web Solutions, which increase production and assembly of its Graviton4 and Trainium2 system-in-packages that need innovative product packaging innovations.
In basic, international foundry market is on an upward trajectory, led by TSMC, Samsung, SMIC, and IFS. Smaller sized and specialized foundries– such as Tower Semiconductor and Lead International– showed blended outcomes. Tower’s incomes increased 0.3% QoQ, which is generally flat, whereas VIS published a 3.3% quarter-over-quarter boost.
By contrast, HuaHong Group experienced a 9.3% quarter-over-quarter decline, with its Q3 profits being up to roughly $766 million. PowerChip Semiconductor Production Co. (PSMC) likewise saw its profits reduction by 7.5% to $305 million, mostly due to almost 10% and 20% decreases in the incomes from PMIC and power discrete items, respectively, which impacted its general efficiency, according to TrendForce.
TrendForce anticipates ongoing need as the market moves into the 4th quarter, particularly when it comes smart device elements, which is a substantial market that needs both leading-edge and relatively simple chips.
Source: TrendForce