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TAP TIMES -20- JANUARY 2023
Top 10 (from 19) ity of the global top 10 foundries will post
either a smaller growth or a drop for their
among the top 10 mainly because of an im- revenue results. This wave of order cor-
balance between demand and production rections will eventually affect the industry
leader TSMC as well.
Revenenue generation sustained
While TSMC could see a larger-than-antic-
ipated drop in 7/6nm orders, its revenue
generation will still be sustained by 5/4nm
orders.
Even though TSMC’s revenue for 4Q22 will
not register a QoQ decline, it will likely to
be mostly flat compared with 3Q22.
China-based SMIC raised its capital expenditures by 32% for In capacity utilization in 4Q22, UMC is still
2022. (SMIC)
going to focus on adjusting its product mix
Downward corrections to allocate more production capacity to
Specifically, driver IC suppliers including chips used in automotive electronics and
Novatek, Chipone, and Ilitek had made industrial equipment.
downward corrections to their wafer input
due to mounting inventory pressure. However, its capacity utilization rate will
still drop by 10 percentage points because
Meanwhile, Nexchip continued with its ca- the declining orders for chips used in con-
pacity expansion. As a result, Nexchip’s sumer electronics will result in a greater
revenue fell by 22.5% QoQ to US$371 mil- amount of idled production capacity.
lion for 3Q22. Its capacity utilization rate
also slid to 80~85%. GlobalFoundries will also not be able to
maintain its capacity utilization rate as it
Steeper Revenue Drop for 4Q22 has not secured enough long-term agree-
Foundries will see steeper revenue drops in ments for 8-inch wafer foundry.
4Q22 as orders for consumer semiconduc-
tor components undergo downward correc- Capacity slide
tions Turning to HuaHong, its subsidiary HLMC
will begin to see a slide in the capacity uti-
In the consumer electronics market, inven- lization rate of its 55nm node that manu-
tory consumption has been slower than ex- factures the MCUs, Wi-Fi chips, and CMOS
pected, so a turnaround will unlikely hap- image sensors used in consumer electron-
pen in short term. ics.
With the slump continuing, foundry orders Likewise, PSMC’s capacity utilization rates
for chips used in consumer electronics will for 8- and 12-inch wafer foundries will
undergo larger downward corrections. This, retreat to 60~65% and 70~75% respec-
in turn, will affect foundries’ wafer ship- tively because of the ongoing order cor-
ments and capacity utilization rates. For rections related to CMOS image sensors,
4Q22, TrendForce believes that the major- DDIs, and other logic chips.
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