Digitimes Research: Taiwan top-3 foundries see combined revenues rise in 3Q16

Nobunaga Chai, DIGITIMES Research, Taipei 0

Combined revenues of Taiwan's top-3 foundries - Taiwan Semiconductor Manufacturing Company (TSMC), United Microelectronics (UMC) and Vanguard International Semiconductor (VIS) - are estimated to be US$9.36 billion in the third quarter of 2016, up 14.3% sequentially and 18.5% on year, according to Digitimes Research.

A seasonal pick-up in end-market demand led to the sequential increase, said Digitimes Research. Meanwhile, revenues saw a substantial on-year growth due to the low point during the same period in 2015.

Taiwan's top-3 foundries saw their combined revenues reach US$8.19 billion in the second quarter of 2016, up 10.7% sequentially and 1.2% on year, Digitimes Research indicated. It was also the first after five consecutive quarters of sequential decreases.

Revenues generated from 16nm process technology are estimated at US$1.75 billion in the third quarter, up 60.6% on quarter. Digitimes Research credited the significant rise to robust shipments for high-end smartphones rolled out by Apple, Huawei and other brands.

In contrast, revenues generated from 20nm process technology will fall to US$240 million in the third quarter from US$480 million in the second, Digitimes Research indicated.

Driven by demand for entry-level and mid-range smartphones, as well as inventory replenishment in the networking IC sector, Taiwan's top-3 foundries will see their combined 28nm revenues grow to US$2.63 billion in the third quarter from US$2.07 billion in the second, Digitimes Research said.

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