Supply chain
Digitimes Research cuts Taiwan foundry output value forecast for 2020
Eric Chen, DIGITIMES Research, Taipei

Digitimes Research has revised downward its Taiwan foundry output value forecast this year, as end-market demand is likely to disappoint due to the prolonged pandemic.

The markets for handsets, consumer PCs and automotive electronics are set to experience a weak third-quarter 2020, which will be dragging down the overall chip demand for the second half of the year. Taiwan Semiconductor Manufacturing Company (TSMC) and other Taiwan-based logic foundries are set to see weak revenue momentum starting the third quarter, Digitimes Research indicated.

TSMC, United Microelectronics (UMC) and Vanguard International Semiconductor (VIS) are expected to see their combined revenues for 2020 total US$46.21 billion, which is about 3.6% lower than the US$47.95 billion estimated in February, according to Digitimes Research.

Digitimes Research now forecasts the combined revenues of Taiwan's top-3 foundries this year will represent a 14.4% increase compared to 2019.

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