It is predicted that this period of inventory correction will continue into Q1 2024.
The Global market shares for the third quarter (Q3) of 2023 were as follows: TSMC at 59%, Samsung Foundry at 13%, UMC at 6%, GlobalFoundries at 6%, SMIC also at 6%, and Others at 10%.
Taiwan Semiconductor Manufacturing Company (TSMC) saw a quarter-over-quarter (QoQ) increase in revenue during Q3 2023. This growth is attributed to recovering markets in personal computers and smartphones, and early signs of demand stabilization.
Samsung Foundry, United Microelectronics Corporation (UMC) and GlobalFoundries saw 1% decrease in their global revenue shares from Q2 to Q3 2023. Semiconductor Manufacturing International Corporation (SMIC) shares remained the same and the others’ combined shares increased by 1% to get back and maintain 10% share in the global market from Q3 2022. Samsung includes foundry service for its internal logic IC business.
The automotive and industrial sectors experienced inventory adjustments in Q3 2023. It is anticipated that this period of inventory correction will continue into Q1 2024, according to a Counterpoint report. There was a strong demand for AI (artificial intelligence) chips in Q3 2023, which is expected to persist in Q4 2023. This is indicated by the shortage of AI graphic processing units (GPUs), a trend likely to continue into 2024.
Overall, from Q1 2022 to Q3 2023 TSMC shares have increased from 54% to 59%, Samsung Foundry share decreased from 15% to 13% and UMC share decreased from 7% to 6%. Globalfoundries and SMIC have maintained their 6% market share. Other foundries’ market shares have decreased from 12% to 10% from Q1 2022 to Q3 2023.
A recovery in advanced node utilization rates is projected to outpace that of mature nodes. Foundries operating in mature nodes might face challenges due to lower utilization rates and increased price competition.
