4Q24 Global Top 10 Foundries Reach New Records in Output Value, TSMC’s Advanced Process Stands Out
TechNews Financial News
March 10, 2025
By TechNews
March 10, 2025
By TechNews
According to the latest survey by TrendForce, the global foundry industry will develop in a polarized manner in the fourth quarter of 2024. Advanced processes will benefit from the growth of emerging applications such as AI servers, and the stocking cycle of new flagship smartphone APs and PC new platforms will continue, driving the growth of high-priced wafer shipments, offsetting the impact of the slowdown in demand for mature processes. The combined revenue of the top ten foundry companies will increase by nearly 10% quarter-on-quarter to US$38.48 billion, setting a new record.
TrendForce stated that with the inauguration of the new Trump administration in the United States, the impact of the new tariff policy on the wafer foundry industry has begun to ferment. In response to the demand for early shipments of TVs, PCs/NBs to the United States, the additional urgent orders in the fourth quarter of 2024 will continue to the first quarter of 2025; the Chinese government has introduced a subsidy policy for old-for-new exchanges since the second half of last year, which has driven upstream customers to purchase goods in advance and replenish inventory. In addition, the market demand for TSMC's AI chips and advanced packaging continues to be strong. Even though the first quarter is traditionally a low season, wafer foundry revenue has only declined slightly.
Analysis shows that in the fourth quarter of 2024, major foundry companies will benefit from the continued shipment momentum of new smartphones and HPC products. TSMC's wafer shipments will increase quarter-on-quarter, and its revenue will grow to US$26.85 billion, maintaining its leading position with a market share of 67%. Second-place Samsung Foundry’s revenue for the fourth quarter fell slightly by 1.4% quarter-on-quarter to USD 3.26 billion, with a market share of 8.1%, as revenue from new advanced process customers could not offset the loss of orders from major customers.
In the fourth quarter of 2024, SMIC's wafer shipments showed a quarterly decrease due to customer inventory adjustments, but benefited from the opening of new 12-inch production capacity and the optimized product portfolio, which led to a quarterly increase in Blended ASP. After offsetting the two, revenue increased by 1.7% quarter-on-quarter to US$2.2 billion, with a market share of 5.5%, ranking third. In the fourth quarter, UMC's capacity utilization and shipments were better than expected as customers stocked up in advance, mitigating the impact of the ASP decline. Its revenue only decreased by 0.3% quarter-on-quarter to US$1.87 billion, ranking fourth in market share. Fifth-place GlobalFoundries also saw a quarterly increase in wafer shipments, which was partially offset by a slight decline in ASP, with revenue growing 5.2% from the previous quarter to US$1.83 billion.
Localized production and domestic IC substitution policy boost Hefei Jinghe's market share ranking
In the fourth quarter of 2024, Huahong ranked sixth in market share, and its HHGrace 12-inch production capacity utilization rate increased slightly, driving a slight increase in wafer shipments and ASP. Another subsidiary, HLMC, has clearly benefited from the replenishment of inventory of Chinese home appliances and consumer subsidies, and its capacity utilization rate has increased. Taking into account the above reasons, Hua Hong's revenue increased by 6.1% quarter-on-quarter to US$1.04 billion.
Tower Semiconductor's market share remained in seventh place. The impact of the decline in capacity utilization in the fourth quarter of 2024 was offset by the improvement in ASP, and revenue increased by 4.5% quarter-on-quarter to 387 million yuan. Ranked eighth in market share is World Advanced Semiconductor. Its wafer shipments and capacity utilization rate declined in the fourth quarter due to weaker consumer demand, which was partially offset by the growth of ASP. Its revenue was NT$357 million, a quarterly decrease of 2.3%.
Although Hefei Jinghe faces the challenge of slowing panel-related DDI shipments, its CIS and PMIC products maintain shipment momentum. Its revenue in the fourth quarter of 2024 increased by 3.7% quarter-on-quarter to 344 million yuan, and its market share ranking rose to ninth place, which is the only ranking that changed this time. Powerchip's ranking slipped to tenth place due to a quarterly decline in revenue due to weakening demand for memory foundry and consumer-related products. However, if we look at the full year of 2024, Powerchip's revenue will still be slightly higher than that of Hefei Jinghe.
Related link: https://finance.technews.tw/2025/03/10/4q24-top10-foundry/
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