TSMC, SMIC, UMC see gross sales enhance as chip scarcity rages

Reminiscence chips are seen on a Samsung Electronics reminiscence module on this organized {photograph} in Seoul, South Korea, on Thursday, July 26, 2018.

SeongJoon Cho | Bloomberg | Getty Photographs

The world’s 10 largest chip manufacturing corporations noticed their revenues surge to a report excessive within the first quarter of 2021, in keeping with market analysis agency TrendForce.

The mixed quarterly whole income of the chipmakers rose to a report $22.75 billion within the first quarter, in keeping with a TrendForce weblog revealed Monday.

Chips are utilized in every thing from vehicles and video games consoles to washing machines and toothbrushes. They type a part of the life blood of the worldwide economic system and are very important to most of the world’s largest industries. However they’re additionally briefly provide — and the scarcity may final till 2023.

“Owing to hovering calls for for varied finish units, producers have been ramping up their part procurement actions, and foundry capacities, in consequence, have been in scarcity since 2020, with varied foundries elevating their wafer costs and adjusting their product mixes to make sure profitability,” TrendForce analyst Joanne Chiao wrote.

Round 57% of the world’s chip foundry revenues within the final quarter have been generated by one Taiwanese chipmaker: Taiwan Semiconductor Manufacturing Corp.

Taipei-headquartered TSMC noticed its income climb to $12.9 billion within the first quarter, up 2% from a 12 months earlier, in keeping with TrendForce, which analyzed how properly every of the corporate’s varied chips bought.

The U.S. and the European Union have stated they need to be extra self-reliant in terms of semiconductors because the overwhelming majority of the world’s chips are made in Asia.

TSMC chips

TSMC’s 7, 12 and 16 nanometer (nm) chips are the firm’s fundamental income drivers, in keeping with TrendForce.

“The income from the 7nm foundry service has stored climbing at a steady tempo due to orders from AMD, MediaTek, and Qualcomm,” Chiao stated, including that gross sales are up 23% on the final quarter.

Income for 12nm and 16nm chips has “grown on account of the demand associated to MediaTek’s 5G RF (radio frequency) transceivers and Bitmain’s cryptocurrency mining machines,” TrendForce added, highlighting how gross sales are up virtually 10% on the final quarter.

Nevertheless, gross sales of TSMC’s smallest and most revolutionary 5nm chips truly noticed a quarterly lower, Chiao stated, including that the principle cause is as a result of Apple (TSMC’s largest 5nm shopper) “entered the low season for gadget manufacturing.”

Storm hurts Samsung

Elsewhere, South Korean chip large Samsung noticed its foundry income drop 2% on the final quarter to $4.1 billion.

Chiao stated that is partly as a result of the freak winter storm in February in Texas prompted energy outages in Austin and compelled Samsung to briefly cease producing chips at one in all its vegetation within the state.

Elsewhere, Taiwan’s United Microelectronics Company noticed its quarterly revenues climb 5% quarter on quarter to $1.6 billion, whereas China’s SMIC rose 15% to $1.1 billion.

TrendForce expects the chip foundries to see additional income development as the value of the chip wafers they produce continues to rise and demand persists.

It stated the quarterly whole income of the highest 10 foundries will “as soon as once more attain a historic excessive” by present process a 1-3% improve quarter-on-quarter for the second quarter of 2021.

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