Global Foundry Market Saw 10% QoQ Growth While 3.5% YoY Decline in Q4 2023

- Advertisement -
- Advertisement -
  • TSMC again led the foundry industry with 61% market share.
  • Revenue from nodes below 7nm accounted for nearly 70% of TSMC’s total revenue for the quarter.

The global foundry industry experienced a 10% quarter-on-quarter (QoQ) growth in revenue but a 3.5% year-on-year (YoY) decline in Q4 2023. This improvement can be attributed to inventory restocking in the smartphone and PC sectors, despite ongoing macroeconomic uncertainties. Rush orders were seen in both PC and smartphone applications, particularly within the Android smartphone supply chain.

TSMC led the foundry industry in Q4 2023 with a 61% market share, showing an improvement from the 59% growth in Q3 2023. The company’s 5nm capacity utilisation rate reached full capacity due to strong demand for AI GPUs from NVIDIA, while Apple’s iPhone 15 drove growth in the 3nm node. This resulted in revenue from nodes below 7nm accounting for nearly 70% of TSMC’s total revenue for the quarter, highlighting its technological competitiveness.

A Counterpoint report said that AI demand is expected to remain strong in 2024, with increased capacity from TSMC’s wafer level system integration platform, CoWoS (chip-on-wafer, wafer-on-substrate) coming online. TSMC will be the major beneficiary of both the AI mega trend and the logic semiconductor demand recovery.

- Advertisement -

Foundry Market report Q$ 2023

Samsung Foundry retained its second position with a 14% market share in Q4 2023, benefiting from continued smartphone restocking and the surge in initial pre-orders for the Samsung S24 series, which positively impacted revenue from its 5/4nm technology.

GlobalFoundries and UMC, both mature node foundries, each held a 6% market share in Q4 2023 and delivered better-than-expected results. However, they provided weak Q1 2024 guidance, reflecting poor demand and customer inventory adjustments, particularly in automotive and industrial applications. 

SMIC, with a 5% market share in Q4 2023, saw high capacity utilisation rates for its 7/10/14nm nodes, catering to Huawei Kirin chips and China’s local CPU/GPU demand. SMIC expects an increase in rush orders for smartphone-related components like TDDI and CIS in the near term but remains cautious about the full-year outlook due to demand sustainability uncertainties.

The foundry industry, after a sharp downturn in 2023, is expected to return to growth in 2024 as inventory normalises. The main growth drivers for the industry in 2024 will be strong demand for AI and a mild recovery in end demand.

- Advertisement -

Related Artcles

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

“Automotive And Medical Will Adopt More Printed Electronics”

0
The automotive industry is experiencing a revolution. But is this revolution limited to the evolution of powertrains? Salil Musale, MD, Naxona (Astarc Group), chats...

Infineon And Amkor Forge Partnership To Boost Semiconductor Manufacturing In Europe

0
With operations set to commence in the first half of 2025, this alliance represents a significant stride in advancing the region's semiconductor manufacturing resilience...

“Alternatives To All Chinese Electronics Components Exist”

0
What is the difference between outsourcing electronics manufacturing to third parties and sourcing electronics built from scratch from third parties? Ishwar Kumhar, CEO of...

Buzz

Ather Energy Eyes Expansion Into Motorcycle Market

0
The new motorcycle from Ather is rumoured to be more powerful than its 450 series e-scooters. Recently, officials from Ather revealed that the company is...

Alfa Romeo Unveils Its First Electric Vehicle

0
Italian automaker unveils the Milano urban SUV, the successor to the Giulietta, offering a choice between mild-hybrid petrol or electric power. Alfa Romeo has unveiled...

Zypp Electric Makes Changes In Its Leadership With 4 New Appointments

0
Ricky Singh has been named Senior Vice President of E2W Operations, Sudhir Sharma as Senior Vice President of Finance, and Sudipto Shome as Vice...

Important Sectors

“Automotive And Medical Will Adopt More Printed Electronics”

0
The automotive industry is experiencing a revolution. But is this revolution limited to the evolution of powertrains? Salil Musale, MD, Naxona (Astarc Group), chats...

Ather Energy Eyes Expansion Into Motorcycle Market

0
The new motorcycle from Ather is rumoured to be more powerful than its 450 series e-scooters. Recently, officials from Ather revealed that the company is...

Alfa Romeo Unveils Its First Electric Vehicle

0
Italian automaker unveils the Milano urban SUV, the successor to the Giulietta, offering a choice between mild-hybrid petrol or electric power. Alfa Romeo has unveiled...

Zypp Electric Makes Changes In Its Leadership With 4 New Appointments

0
Ricky Singh has been named Senior Vice President of E2W Operations, Sudhir Sharma as Senior Vice President of Finance, and Sudipto Shome as Vice...

Tresa Motors Launches Version 0.2 Of Its Electric Truck

0
The VO.2 is designed to offer a cost-effective and environmentally friendly logistics solution, boasting a powerful Axial Flux Motor, a quick 20-minute charge time,...

Manufacturing

Tesla Starts Making Cars In Germany For India Exports This Year

0
A Tesla team is set to visit India this month to scout locations for a car manufacturing plant, with an estimated investment of around...
Sona Comstar

Sona Comstar Earns Second PLI Certification For Electric Two-Wheeler Hub Motor

0
In 2021, the government launched a five-year output-linked incentive scheme with a budget of Rs 25,938 crore to enhance local production of advanced automotive...

Valeo Launches ADAS Component Plant In Korea

0
The Valeo Daegu plant, now producing parking assistant sensors, is set to be a major Asian hub for autonomous driving sensors, gearing up for...

Indian Oil & Panasonic Energy To Make Li-ion Cells In India

0
The companies have signed a term sheet to establish a framework for a joint venture to manufacture cylindrical lithium-ion cells in India, anticipating growing...

BYD Delays Vietnam EV Factory Plans

0
Vietnam's government announced in May that BYD plans to construct a facility for manufacturing and assembling electric cars in Phu Tho, a northern Vietnamese...