© head off dreamstime.com Analysis | March 18, 2019
Trendforce ranks the global top 10 IC foundries for 2019
Development momentum of advanced production processes has been dropping due to weakening demand in most end markets, including smartphones, says Trendforce.
Foundries face a severe challenge in 1Q19, and global foundry production revenue for the first quarter is expected to decline by around 16% compared to the same quarter 2018, arriving at USD 14.6 billion. TSMC, Samsung and GlobalFoundries take first, second and third place respectively in market shares, and although TSMC's market share reaches 48.1% , it suffers a near 18% decline in YoY growth. TrendForce points out that the 1Q19 rankings for foundries remains almost the same as last year's save for Powerchip, who might be surpassed by TowerJazz due to falling demand in the 12-inch foundry market . However, upon closer examination of the top ten foundries (including TSMC, Samsung LSI, GlobalFoundries, UMC, SMIC, Powerchip etc.), they all exhibited double-digit downslides in revenue performance compared to the same quarter last year. This is also due to the weakening demand in the 12-inch foundry market. In contrast, though companies who have 8-inch foundries as their main focus, such as TowerJazz, Vanguard, Hua Hong, Dongbu HiTek etc., did not show an outstanding YoY revenue performance comparable to the same period last year due to the gradual alleviation of the shortage situation, these 8-inch focused foundries still managed to hold their ground in a relatively gloomy semiconductor market of the first season compared to the double digit decline suffered by their 12-inch counterparts. Although market share champion TSMC scrapped wafers due to the defective photoresist chemical incident in the first quarter, and was affected by the lower-than-expected sales performance among its major smartphone customer base and the subsided cryptocurrency gold rush, it still sits snugly atop the throne in foundry market shares. Looking forward, TSMC's 2019 market performance will be aided not only by the first quarter shipment orders pushed to the second, but also by contributions to revenue from collaboration with customers such as HiSilicon, Qualcomm, Apple and AMD etc. We may get a chance to see TSMC's revenue climb its way out of the 1Q19 valley season by season. Samsung Foundry, which split off back in 1H17, landed second place in market shares thanks to contributions from its System LSI division. Yet according to our estimations, their revenue from external customers contribute to only about 40% of its revenue. Samsung has also been promoting multi-project wafer (MPW) services in recent years. Apart from the active acquisition of advanced manufacturing services, their 8-inch production line located in Giheung, Korea will gradually contribute to Samsung Foundry's revenue as well. Samsung aims to secure a 25 % market share by 2023. The global foundry production capacity will near the USD 70 billion threshold in 2019 looking forward. However various nuisances have impacted the 1Q19 market: Apart from the traditional offseason, weakening demand for consumer products, rather high inventory levels, falling demand in the car market, the Intel CPU shortage and the slowing of China's economic growth, the US-China trade dispute also presents major uncertainties for the global market. If the politico-economic situation doesn't see significant improvement in the first half of the year, we at TrendForce will maintain a cautious view on the global foundry industry of 2019. We won't even rule out the possibility of rare negative numbers in total production capacity growth.
|Rank||Company||1Q18 Revenue||1Q19 Revenue (E)||1Q19 Market Share (E)||1Q19 Revenue Growth YoY (E)|
|9||Hua Hong Semiconductor||210||220||1.5%||4.7%|
Heidenhain opens new expanded Western US HQ This includes the expansion of its executive, sales and technical support offices, as well as demo facilities in San Jose, California.
Delphi Technologies awarded new power electronics business Delphi Technologies is making new strides by securing new power electronics business wins in the second quarter of 2020 with three Chinese OEMs. The new business is scheduled to launch in the 2021-23 timeframe.
Mycronic combines US operations in new facility near Boston Mycronic US says that all of its operations have been integrated into a new 102,000 square-foot facility in Tewksbury, near Boston, Massachusetts.
Lynn Electronics acquires West Coast cable assembly company Pennsylvania-based Lynn Electronics, a manufacturer of fibre optic and copper cable assemblies, has completed its acquisition of Coast 2 Coast, LLC (C2C), an Anaheim, California cable assembly manufacturer.
Fictiv and Jabil team up for agile 3D printing collaboration The collaboration aims to accelerate and de-risks product development in the move from prototyping and low volume production to large scale global fulfilment.
TT expands with new industrial electronics manufacturing facility The UK-based electronics manufacturing specialist is expanding the footprint of its Global Manufacturing Solutions division by opening operations in Kuantan, Malaysia.
GE Appliances invests $62 million at its Louisville facility The manufacturer is gearing up to build high-end refrigerators and expand capacity at its manufacturing facility in Louisville, Kentucky., creating 260 new jobs.
Eaton buys new facility – merges busway operations from multiple sites Power management company Eaton has purchased a new facility in Hodges, South Carolina, establishing a new home for Eaton’s busway product line currently spanning three facilities across Greenwood County.
AIM adds new facility in Brazil AIM Solder has opened a new wholly-owned facility in Manaus, Brazil. This new stocking facility, which represents the only legitimate source of AIM products in Brazil, enables the company to support a growing Brazilian market.
PFOA now in REACh and POP regulation On 4 July, PFOA - perfluorooctanoic acid, its salts and precursor compounds - was included in the POP (Persistent Organic Pollutants) Regulation (EU) 2019/1021 and at the same time also came into force in the REACh Regulation (Annex XVII, entry 68).
Manz AG receives further Battery order Manz AG is expanding its successful partnership with an international battery manufacturers in the Energy Storage segment with a further major order in the mid double-digit million euro range.
Advantech and Interlatin to set up JV in Mexico Industrial IoT specialist, Advantech, says it is establishing a joint venture subsidiary in Mexico with its channel partner Interlatin.
Mercedes-Benz takes equity stake in Farasis Mercedes-Benz is taking another important step on its journey towards CO₂--neutral mobility. The Stuttgart-based car manufacturer has launched a strategic partnership with Chinese battery cell manufacturer Farasis Energy (Ganzhou) Co., Ltd., including taking an equity stake.
A new EMS provider sees the light of day EMS providers DataED and Bestronics merge to launch a new player – Emerald EMS.
Tektronix joins the fight agains COVID-19 Tektronix has shifted its focus from supporting vehicle manufacturing to assisting with ventilator production.
ABB completes divestment of Power Grids to Hitachi ABB has reached a significant milestone in the company’s transformation towards a decentralized global technology company, with the completion of the divestment of 80.1% of its Power Grids business to Hitachi.
Germany amps up domestic battery production with massive state subsidies The German government is investing more than EUR 1.5 billion in battery cell research and production.
Internal promotions and executive retirements at Kimball EMS provider, Kimball Electronics, has made two new internal promotions aimed at contributing to the company accelerating its strategic growth plans.
Kyocera & TMDU team up for research on vitals measurement headset Kyocera Corporation and Tokyo Medical and Dental University (TMDU) have teamed up on a joint research project to develop a wireless headset that can remotely monitor high accuracy patient biometrics, such as blood oxygen saturation (SpO2).
German battery manufacturer receives funding for cell production facility VARTA AG receives public funding of EUR 300 million for battery cell production facility.
Scanfil to streamline its factory network The EMS provider is planning to combine the production of its Hamburg factory with its other factories in Germany and Poland
Kitron awarded new order within measurement technology Kitron has been awarded new business for measurement technology. The award covers a period of five years, and the expected annual value is between EUR 3.5-5 million.
NORBIT ASA awarded aquaculture contract Norwegian technology manufacturer, NORBIT, has been awarded a new contract from an existing customer within the aquaculture market.
Saki strengthens its Asian operations The AOI specialist is expanding its global sales organisation with new Asia sales department, and appointing Katsuhiro Eddie Ichiyama as Senior General Manager for the Asian regionLoad more news