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Digitimes Research: Taiwan top foundries combined revenues to drop 6% in 1Q14
Nobunaga Chai, DIGITIMES Research, Taipei [Monday 17 February 2014]

Taiwan's top-three IC foundries will see their combined revenues drop 6.2% sequentially in the first quarter of 2014, due to seasonal factors and continued inventory adjustments at their clients, according to Digitimes Research.

A fall in 28nm chip ASPs was another factor causing the revenue drop during the quarter, as a result of lower capacity utilization rates, said Digitimes Research.

Combined revenues for Taiwan Semiconductor Manufacturing Company (TSMC), United Microelectronics (UMC) and Vanguard International Semiconductor (VIS) totaled US$6.15 billion in the fourth quarter of 2013, down 9% from US$6.76 billion in the third, Digitimes Research disclosed. Disappointing sales of PCs and high-end smartphones and a seasonal slowdown in orders coming from the games console industry led to the revenue decrease.

The top-three IC foundries are expected to see their combined revenues register another sequential decline in the first quarter of 2014, but rebound to growth in the second quarter thanks to a pick-up in end-market demand and rising product ASPs, Digitimes Research indicated.

Top foundry TSMC is set to ramp up production of 20nm chips in the second quarter of 2014, while benefiting a pull-in of orders for 28nm chips, Digitimes Research noted.

Content from this blog post was provided by the Digitimes Research Tracking team, which focuses on shipment data and market trends in the global mobile device supply chain. Digitimes Research provides quarterly tracking services for market sectors such as Global Tablet, China Smartphone, China Smartphone AP, China Touch Panel, Taiwan ICT and Taiwan FPD. Click here for more information about Digitimes Research Tracking services.

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