3Q24 global top 10 foundry revenues reach record highs

According to TrendForce’s latest report, while the overall economic situation did not significantly improve in the third quarter of 2024, factors such as supply chain stocking driven by new smartphone and PC/notebook launches in the second half of the year, coupled with continued strong demand for AI server-related HPC, led to an improvement in overall wafer foundry capacity utilisation compared to the second quarter.

In the third quarter, the total revenue of the world’s top 10 wafer foundries increased by 9.1% QoQ — reaching USD 34.9 billion. Part of this growth was attributed to the substantial contributions from the high-priced 3 nm process, breaking the record set during the pandemic.

Looking ahead to the fourth quarter of 2024, TrendForce predicts that advanced processes will continue to drive the revenue of the top 10 foundries, though the QoQ growth rate is expected to narrow slightly. Operational performance is anticipated to be polarised: AI and flagship smartphone/PC main chips are expected to sustain demand for 5/4 nm and 3 nm processes through the end of the year. CoWoS advanced packaging will continue to face supply shortages.

For mature processes at 28 nm and above, uncertain end-market sales, the approach of the traditional first-quarter sales lull in 2025, and a significant decline in stocking demand for peripheral ICs such as TV SoCs, LDDIs, and panel-related PMICs following inventory build-ups in the third quarter of 2024 are expected to weigh on demand.

However, these negative factors are likely to be offset by year-end shipment surges from Chinese smartphone brands and urgent orders driven by China’s old-for-new replacement subsidies, which are stimulating supply chain activity. Consequently, mature process capacity utilisation in the fourth quarter is projected to remain flat or see slight growth compared to the previous quarter.

TrendForce reports that the revenue rankings of the top ten wafer foundries remain unchanged in the third quarter, with TSMC maintaining its leading position with a market share of nearly 65%. The simultaneous launch of flagship smartphone products, AI GPUs, and new PC CPUs drove an increase in TSMC’s capacity utilisation and wafer shipments, resulting in a 13% QoQ revenue growth to USD 23.53 billion.

Samsung Foundry maintained its position as the second-largest foundry by revenue in the third quarter. Despite securing some smartphone-related orders, the company’s advanced process clients’ products are approaching the end of their life cycles. Additionally, intensified competition from Chinese peers in the mature processes led to price concessions, resulting in a 12.4% QoQ revenue decline and a decrease in market share to 9.3%.

SMIC, ranked third in revenue, saw no significant increase in wafer shipments during the third quarter. However, thanks to product mix optimisation and the release of additional 12-inch capacity driving shipments, its revenue grew by 14.2% QoQ to USD 2.2 billion.

For more information visit TrendForce.