Taiwan semiconductor digest: July revenues
Last week saw the release of the July revenue figures by Taiwan’s publicly listed semiconductor companies. While results across the sector were generally positive, demand for chips built using more mature processes for applications such as automotive is growing much more slowly than for high-end AI server and smartphone chips manufactured at cutting-edge 3nm and 5nm nodes.
TSMC reported a record-breaking revenue of US$7.9 billion in July, marking a 24% sequential increase and a 45% year-over-year (YoY) growth. This surge was driven by strong demand from major clients such as Apple, Nvidia, Qualcomm, and MediaTek for its 3nm and 5nm nodes. TSMC’s revenue in New Taiwan dollars (NT$) for the year to date is 30% higher than the same period in 2023. TSMC expects third-quarter revenue to reach between US$22.4 billion and US$23.2 billion, representing a quarter-on-quarter growth rate of 7.58% to 11.43%. TSMC is also reported to have informed customers of a 3–8% price increase for its 5nm and 3nm process manufacturing in 2025 to reflect rising costs and is also expected to raise prices for its CoWoS packaging.
UMC (United Microelectronics Corporation), Taiwan’s second-largest foundry, saw its July revenue rise to a 19-month high of US$644 million. This reflects a 19% sequential increase and 9.6% YoY growth. UMC’s revenue for the first seven months of 2024 reached NT$132.33 billion (US$4.29 billion), up 2.1% from the same period last year.
VIS (Vanguard International Semiconductor), a specialist in 8-inch wafer manufacturing, reported July revenue of US$109 million, which is a 13% sequential decline and a 1% decrease YoY. However, VIS’s year-to-date revenue stands at US$747 million, showing a 12% increase compared to the same period in 2023.
ASE (Advanced Semiconductor Engineering), a leader in the outsourced semiconductor assembly and test (OSAT) industry, reported July revenue of US$846 million for its ATM group, which includes ASE and SPIL. This represents a 4.7% sequential increase, though a 2.4% YoY decline, primarily attributed to exchange rate fluctuations.
GlobalWafers, a key wafer substrate manufacturer in Taiwan, has forecasted a high single-digit percentage drop in revenue for 2024 compared to 2023, due to a prolonged inventory correction cycle among its customers. Previously, the company had projected flat revenue for 2024. GlobalWafers expects the inventory correction to conclude by the end of 2024, with growth anticipated to resume in 2025. The company reported a 17% revenue decline in the first half of 2024 to US$930 million, with expectations of flat revenue for the second half. Despite these challenges, demand for 12-inch wafers remains strong, and 8-inch wafer demand is recovering, with no further deterioration seen for 6-inch wafers.
