Taipei, Wednesday, April 1, 2015 19:00 (GMT+8)
partly cloudy
Taipei
26°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.

High-brightness LED market trends and forecast, 2015

RESEARCH EXTRAS | Mar 16, 17:50

Digitimes Research forecasts that in 2015, the global high-brightness (HB) LED industry will have annual growth of 7.5% in terms of output, reaching US$13.7 billion. The total number of LEDs used will reach 186 billion units, representing annual growth of 32.6%,...

2015 China IC design market forecast

RESEARCH EXTRAS | Jan 23, 10:50

Global economic growth is forecast to reach 3.8% in 2015, up from 3.3% in 2014. From the perspective of the electronics industry though, PC shipments will continue to decline, smartphone shipment growth will drop, and tablet shipments may decline. Despite the...

Taiwan large-size LCD panels – 4Q 2014

TAIWAN LCD PANEL | Feb 17, 11:23

Taiwan-based makers saw their large-size TFT LCD panel shipments increase on year in fourth-quarter 2014, driven largely by demand for TV applications. But they are facing growing competition from China-based and Korea-based makers who are ramping up new production...

Taiwan LCD TVs – 4Q 2014

TAIWAN DISPLAY SYSTEM | Feb 17, 11:07

Taiwan's LCD TV makers saw significant increases in shipments in the fourth quarter of 2014 thanks to strong seasonal demand, as well as Foxconn's shipments to Mexico to fulfill government procurement orders.

Taiwan small- to mid-size LCD panels – 4Q 2014

TAIWAN LCD PANEL | Feb 16, 15:11

Major Taiwan-based suppliers of small- to medium-size LCD panels changed their production strategies in fourth-quarter 2014 as the industry entered the slow season amid sluggish demand for smartphone applications and rising competition from China-based rivals...

2015 global notebook demand forecast
DIGITIMES Marketing Services
DIGITIMES Translation Services
  • 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.