Supply chain
Digitimes Research: Taiwan 1Q16 top foundries combined revenues to decrease
Nobunaga Chai, DIGITIMES Research, Taipei

Combined revenues of Taiwan's major foundries: Taiwan Semiconductor Manufacturing Company (TSMC), United Microelectronics (UMC) and Vanguard International Semiconductor (VIS) are forecast to reach US$7.24 billion in the first quarter of 2016, representing decreases of 2.7% sequentially and 14.3% on year, according to Digitimes Research.

The first quarter would mark the fifth consecutive quarter of sequential declines, said Digitimes Research.

Inventory adjustments at most of the foundries' clients are already coming to an end with some even engaged in inventory replenishment, but end-market demand remains weak and sales of high-end smartphones have been less optimistic, Digitimes Research indicated. Overall, the foundries have seen their clients being cautious about placing orders in the first quarter.

Utilization rates at TSMC, UMC and VIS will fall to 80.3% in the first quarter of 2016 from 83.5% in fourth-quarter 2015, Digitimes Research said. Combined production capacity at the foundries will expand to a record 7.715 million 8-inch equivalent wafers in the first quarter, but customers' conservative attitude will drag down utilization rates.

Digitimes Research forecast that combined revenues of TSMC, UMC and VIS will come to US$32.91 billion in 2016, up 3.2% from US$31.88 billion in 2015.

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 China Smartphone, China Smartphone AP, Taiwan ICT and Taiwan FPD. Click here for more information about Digitimes Research Tracking services.

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