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$8.02 billion in the second quarter of 2016, up 8.4% on quarter but down 0.9% on year, according to Digitimes Research.
Rising demand for entry-level and mid-range smartphones in China and emerging markets, as well as a pick-up in orders from suppliers of wireless ICs, power management chips and LCD driver ICs led to the sequential growth, said Digitimes Research.
During the second quarter, revenues generated from 28nm process technology have been driven by growing demand for entry-level and mid-range smartphones, Digitimes Research indicated. The node as a proportion of total revenues will rise in the second quarter.
Meanwhile, revenues generated from 16nm process technology will also increase in the second quarter, when shipments for HiSilicon's and Apple's new mobile processors and Nvidia's GPU kick off, Digitimes Research noted. Of the total revenues generated by Taiwan's top foundries, 28nm and below processes will account for 50.4% in the second quarter compared with 45.2% in the first, Digitimes Research forecast.
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