© 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%|
U.S. polysilicon makers laud Phase 1 of China deal The United States’ three remaining manufacturers of polysilicon expressed appreciation to President Trump and praised U.S. negotiators for securing the Chinese commitment to purchase U.S. polysilicon in the first phase of the U.S.-China trade deal.
Dupont explores divestiture of electronics unit Following its recent USD 26.2 billion deal to sell off its nutrition business, DuPont de Nemours Inc. is weighing a divestiture of its electronics unit, according to people familiar with the matter.
AMD bolsters exec leadership team AMD has announced several promotions and one new hire to its senior leadership team, in an effort to enable the company’s continued growth in the high-performance computing, graphics and visualization technologies market.
Webasto opens new battery centre in Jiaxing Webasto has inaugurated its new roof plant and battery center in Jiaxing (Zhejiang Province) close to Shanghai.
Panasonic to expand its manufacturing footprint in India Panasonic is looking to build a new wiring device factory in southern India. The new factory is scheduled to start production in autumn 2021, responding to the increased demand in the country.
Season Group strengthens wireless R&D & manufacturing capability Season Group has invested in, and installed, two high-speed and high-precision wireless communication testers - Rohde & Schwarz’s R&S CMW500 Wideband Radio Communication Tester and R&S CMW100 Communications Manufacturing Test Set.
Rocket Lab expands capabilities in So Cal Rocket Lab announced this week it will open a new facility to serve as its corporate headquarters and provide increased production capacity.
PCB Piezotronics unveils new clean rooms PCB Piezotronics Inc., a wholly owned subsidiary of MTS Systems Corporation, has announced the completion of environmentally controlled clean rooms at their DePew, New York facility.
European loudspeaker company brings production back home Difficulties manufacturing smaller design series among reasons for the decision to return back to base.
China only region to register pure-play foundry market growth Rise of China-based fabless IC suppliers offers increased opportunities for foundries, IC Insights states in a recent report.
Mycronic receives first SLX order Swedish production equipment specialist, Mycronic, has recieved their very first order of its mask writer SLX.
600 new German jobs as VARTA expands production again The lithium-ion battery market continues to experiencing growth, currently the market is poised to continue to move forward with an annual growth of about 30% – and VARTA wants a big piece of the pie.
FTG achieves S9100D certification at acquired PCB fab Firan Technology Group Corporation has completed and received AS9100D Certification from SAI Global Ltd. for its recently acquired PCB manufacturing facility located in Fredericksburg, Virginia USA (formerly Colonial Circuits Inc.).
Dutch block sale of technology, China miffed Following ASML’s denial of an export license by the Dutch government to sell a piece of critical chip-making technology to the Chinese, China’s ambassador to the Netherlands has issued a statement expressing his country’s displeasure.
DuPont aids S. Korea in photoresist shortage The office of Korea’s Ministry of Trade, Industry, Sung Yun-mo, met with DuPont President Jon Kemp last week to confirm DuPont’s investment in the country’s need for diversification of its EUV photoresist supply.
Volvo building U.S. battery assembly plant In preparation for bringing a new line of electric vehicles to the U.S. market, Volvo announced it will build a battery assembly plant at its existing facility in Ridgeville, South Carolina.
New game consoles expected to trigger demand surge for graphics DRAM and SSD's TrendForce expects the year-end release of new generation game consoles to trigger a demand surge of graphics DRAM and SSD's during the second half of 2020.
A new year begins with new machinery at Swedish Microwave In Motala, Sweden sits Europe’s oldest manufacturer of Low Noise Block down-converters (LNB) for the global satellite market, namely Swedish Microwave (SMW). The company is now kicking off 2020 with an investment in production.
Lucid eyeing April reveal of pre-production sedan Luxury EV manufacturer Lucid has announced that production is underway in Silicon Valley of 80 beta prototypes of its luxury sedan, Lucid Air, to be unveiled in April in New York City.
Ideal Industries moving the ball forward at Cree Following its March announcement that Cree had sold off the entirety of its lighting business to Ideal Industries in a USD 310 million deal, Ideal said it would remain dedicated to pumping investment dollars into the now privately-held Cree Lighting.
Former pSemi exec and CEO Jim Cable retires pSemi Corporation has announced the retirement of former CEO and long-term executive Jim Cable.
Rohde & Schwarz inks agreement to use Benchmark's muscles The German electronics group has signed a strategic agreement with US EMS provider, Benchmark Electronics, to enhance its manufacturing capacities.
Stoneridge appoints new VP of operations Stoneridge Inc. has announced Kevin Heigel as its new vice president of operations.
Gartner: Worldwide semiconductor revenue declined 11.9% in 2019 Intel reclaimed top spot in global semiconductor market; Samsung moved to no. 2.Load more news