Growth Momentum in the Taiwan-based Semiconductor Foundries

Growth Momentum in the Taiwan-based Semiconductor Foundries

The recovery shown by semiconductor foundries which are Taiwan-based on an adequate increase in mid-2019 with global market demand is concluded by the observations of the Digitimes Research. The total revenues of 9.13 billion US dollars were gathered by three major companies TSMC (Taiwan Semiconductor Manufacturing Company), UMC (United Microelectronics Corporation) and VIS (Vanguard International Semiconductor Corporation).

Taiwan-based semiconductor foundries were under a lot of pressure due to some critical circumstances which didn’t prove to be profitable. They were the deteriorating global economy, the awaited depletion of inventory by the customers of the foundry and the smartphone market reaching the peak of saturation. But the foundry was able to live up to its name and revenue growth was delivered. It was done by the help of some of the clients working for the early preparations of the inventory, according to the latest reports by the Digitimes Research.

The production incident being the cause of the delayed shipments by the TSMC, regarding manufacturing nodes in the mid of 2019, the major revenue generator for the foundry became the 20/16/14/12nm process technologies. The sequential rise in the total revenues produced by the process nodes that were advanced having 28nm and beyond that was also seen but not in  late 2018. This sequential increase also lifted the ASP (average selling price) due to the progress done by advanced process nodes.

The revenues of the Taiwan-based foundries can be lifted back up to 10 billion US dollars due to the adequate increase in the market demand and capacity utilization due to that. And it will be more progressive in late 2019. As the demands of the 5g and Al sectors, the revenues will increase from the performance of the advanced nodes and the 7nm ones, which will eventually increase the ASP.

A number of factors prove the expected growth momentum in the foundries. They include new iPhones entering the market by the Apple Company and the supply chain of Huwaei and high demand of electronic industry and the increment in the demand for 5G applications.