Taipei, Tuesday, August 4, 2015 10:26 (GMT+8)
partly 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 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.

Realtime news
  • LanMark posts profit for 1H15

    Bits + chips | Aug 3, 21:06

  • Samsung Pay to be released in September, say reports

    Mobile + telecom | Aug 3, 21:04

  • Global chip sales rise 2% in 2Q15, says SIA

    Bits + chips | Aug 3, 21:02

  • China market: New energy vehicle sales and production climbing

    Green energy | Aug 3, 21:00

  • Motech suffers net losses in 2Q15

    Green energy - Stockwatch | Aug 3, 20:58

  • Digitimes Research: China market shows mixed pricing trends for July 7W, 9W LED light bulbs

    LED | Aug 3, 20:27

  • Taiwan market: Xiaomi to open retail outlet

    Before Going to Press | Aug 3, 21:17

  • Digitimes Research: Taiwan handset shipments to drop in 3Q15, 4Q15

    Before Going to Press | Aug 3, 21:04

  • Taiwan market: Acers sees strong sales at TCAS

    Before Going to Press | Aug 3, 20:59

  • Catcher capacity is not harmed from recent employee protest, says company

    Before Going to Press | Aug 3, 20:44

  • Elan, Precise Biometrics tie up for fingerprint sensor devices

    Before Going to Press | Aug 3, 20:40

  • Inspection service company Sporton posts revenue growth in July

    Before Going to Press | Aug 3, 20:23

  • HP says business separation not affecting ordering system

    Before Going to Press | Aug 3, 20:23

  • China makers could surpass Korea in small- to medium-size AMOLED capacity by 2018

    Before Going to Press | Aug 3, 20:03

  • Makers optimistic about handset panel shipments to China in 2H15

    Before Going to Press | Aug 3, 20:02

  • Ichia sees decreased July revenues

    Before Going to Press | Aug 3, 19:27

  • Demand for low-efficiency PV modules comes out in US market

    Before Going to Press | Aug 3, 19:25

  • China market: Huawei offers business-use cloud computing services

    Before Going to Press | Aug 3, 19:23

  • Digitimes Research: RT Works launches Robot Assist Walker RT. 1

    Before Going to Press | Aug 3, 19:09

  • Digitimes Research: Global tablet shipments to decline 15% on year and reach 52 million units in 3Q15

    Before Going to Press | Aug 3, 19:07

Pause
 | 
View more
Developments in the UV LED industry
2015 China smartphone panel trend forecast
2015 global notebook demand forecast
  • 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.