Taipei, Thursday, September 1, 2016 00:46 (GMT+8)
mostly cloudy
Taipei
31°C
Digitimes Research: Taiwan top-3 foundry houses perform well in 1Q14
Nobunaga Chai, DIGITIMES Research, Taipei [Monday 19 May 2014]

Despite the impact of seasonality and inventory adjustments at PC and consumer electronics product clients, the top-three Taiwan-based wafer foundry houses still managed to ramp up their combined revenues by 0.4% on year to US$6.15 billion in the first quarter of 2014, buoyed by replenishment orders for smartphone solutions from Qualcomm, Broadcom and MediaTek, according to Digitimes Research.

However, inventory value at major IC suppliers around the globe saw a sequential drop to a nine-quarter low in the quarter. Along with an expected economic recovery, chip vendors are expected to begin to replenish their inventories in the second quarter, which will be instrumental to boosting revenues at the top-three foundry houses in the quarter, said Digitimes Research.

To cope with strong demand from the smartphone and tablet sectors, Taiwan Semiconductor Manufacturing Company (TSMC) has continued to ramp up the capacity of its 28nm process, and will start generating revenues from its 20nm production node in the second quarter of 2014. Meanwhile, the 28nm PolySiON process at United Microelectronics Corporation (UMC) will also start contributing to its revenue growth in the second quarter.

As a result, the ratio of revenues generated from 28nm and below processes of the top-three foundry houses will increase significantly in the second quarter, along with an improvement in ASP.

With the completion of annual maintenance at TSMC and UMC in the second quarter, newly added 12-inch fab capacities, as well as from an 8-inch fab from Vanguard International Semiconductor (VIS), the top-three foundry houses are expected to roll out 6.48 million 8-inch equivalent wafers in the second quarter, with the capacity utilization rates of their advanced processes ramping to 98.2%, Digitimes Research estimated.

Overall, the top-three foundry companies are expected to see combined revenues soar 20.4% sequentially to US$7.37 billion in the second quarter of 2014, with the growth momentum to continue into the second half of 2014.

Content from this article was part of a complete Digitimes Research Chinese-language report that has not yet been translated into English. If you are interested in an English version of the report or wish to receive more information about the report, click here to contact us and we will get back to you as soon as possible. Digitimes Research also provides quarterly tracking services for market sectors such as Global Tablet, China Smartphone, China Smartphone AP, Taiwan ICT and Taiwan FPD. Click here for more information about Digitimes Research Tracking services.

Realtime news
  • Taiwan market: Fitbit to launch 2 fitness wristbands, says paper

    Before Going to Press | 2h 47min ago

  • Demand from Taiwan chipmakers brisk, says Namics

    Before Going to Press | 2h 48min ago

  • Solid capacitor supplier Apaq to see revenues hit highs in August, September

    Before Going to Press | 2h 49min ago

  • Sanan Optoelectronics, Xiamen Xindeco hike LED prices

    Before Going to Press | 2h 49min ago

  • Etron ramping up shipments of USB Type-C controller ICs

    Before Going to Press | 2h 51min ago

  • China market: Huada aims to become largest MCU vendor locally

    Before Going to Press | 3h 12min ago

  • HTC invests in medicare VR software developer Surgical Theater

    Before Going to Press | 3h 13min ago

  • Lens maker Optivision reports low profits for July

    Before Going to Press | 3h 14min ago

  • Acer lands digital signage orders from Germany-based fast food chain

    Before Going to Press | 3h 18min ago

  • Taiwan automation association to partner with machine tool association to push Industry 4.0 and IoT

    Before Going to Press | 3h 22min ago

  • IFA 2016: Asustek launches new mobile devices

    Before Going to Press | 3h 27min ago

  • Servtech rolls out IoT platform for improving production efficiency

    Before Going to Press | 3h 34min ago

  • Calitech plans Taiwan OTC listing

    Before Going to Press | 3h 35min ago

  • AWSC announces stock buyback

    Before Going to Press | 3h 35min ago

Pause
 | 
View more
UMC
Wireless broadband developments in Southeast Asia markets
Analysis of China revised domestic semiconductor industry goals
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.