Strong demand to help TSMC dominate foundry ranking
The top ten foundries ranked by estimated revenue for 1Q21 are set to show an aggregate 20 percent year-on-year growth with market leader expected to beat that average with 25 percent growth.
TSMC’s 5nm and 7nm nodes are responsible for about 20 and 30 percent of company revenue, respectively. This will help drive record sales in 1Q21 at TSMC driven by demand for 5G, high performance computing and automotive applications.
Top ten foundries ranked by estimated 1Q21 revenue. Source: TrendForce.
UMC’s and Globalfoundries’ manufacturing capacities are fully loaded As well as demand for automotive chips GloFo has been manufacturing for the US Department of Defense and is expected to see its revenues increase 8 percent year-on-year in 1Q21.
SMIC is expected to see a decline in revenue for nodes at 14nm and below due to the US entity listing (see US hits SMIC with embargo, as expected). However, the demand for its mature process node manufacturing is such that SMIC will remain on an upward trajectory, but behind the market average at 17 percent year-on-year.
The largest gain in revenue will be at Hua Hong. It has a significant expansion of capacity by way of a 300mm wafer fab, HH Fab7, in Wuxi. Process technologies for NOR flash memory, BCD and IGBT power semiconductors have all passed qualifications. Hua Hong’s revenue may likely reach a 42 percent YoY increase in 1Q21.
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