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.