Memory chips are seen on a Samsung Electronics reminiscence module on this organized {photograph} in Seoul, South Korea, on Thursday, July 26, 2018.
SeongJoon Cho | Bloomberg | Getty Images
The world’s 10 largest chip manufacturing corporations noticed their revenues surge to a file excessive within the first quarter of 2021, based on market analysis agency TrendForce.
The mixed quarterly complete income of the chipmakers rose to a file $22.75 billion within the first quarter, based on a TrendForce blog revealed Monday.
Chips are utilized in all the things from automobiles and video games consoles to washing machines and toothbrushes. They kind a part of the life blood of the worldwide financial system and are very important to most of the world’s largest industries. But they’re also in short supply — and the shortage could last until 2023.
“Owing to soaring demands for various end devices, manufacturers have been ramping up their component procurement activities, and foundry capacities, as a result, have been in shortage since 2020, with various foundries raising their wafer prices and adjusting their product mixes to ensure profitability,” TrendForce analyst Joanne Chiao wrote.
Around 57% of the world’s chip foundry revenues within the final quarter have been generated by one Taiwanese chipmaker: Taiwan Semiconductor Manufacturing Corp.
Taipei-headquartered TSMC noticed its income climb to $12.9 billion within the first quarter, up 2% from a 12 months earlier, based on TrendForce, which analyzed how properly every of the corporate’s varied chips bought.
The U.S. and the European Union have mentioned they wish to be extra self-reliant in terms of semiconductors because the overwhelming majority of the world’s chips are made in Asia.
TSMC chips
TSMC’s 7, 12 and 16 nanometer (nm) chips are the firm’s important income drivers, based on TrendForce.
“The revenue from the 7nm foundry service has kept climbing at a stable pace thanks to orders from AMD, MediaTek, and Qualcomm,” Chiao mentioned, including that gross sales are up 23% on the final quarter.
Revenue for 12nm and 16nm chips has “grown on account of the demand related to MediaTek’s 5G RF (radio frequency) transceivers and Bitmain’s cryptocurrency mining machines,” TrendForce added, highlighting how gross sales are up nearly 10% on the final quarter.
However, gross sales of TSMC’s smallest and most progressive 5nm chips really noticed a quarterly lower, Chiao mentioned, including that the primary purpose is as a result of Apple (TSMC’s largest 5nm consumer) “entered the off-season for device production.”
Storm hurts Samsung
Elsewhere, South Korean chip big Samsung noticed its foundry income drop 2% on the final quarter to $4.1 billion.
Chiao mentioned that is partly as a result of the freak winter storm in February in Texas precipitated energy outages in Austin and compelled Samsung to quickly cease producing chips at one among its crops within the state.
Elsewhere, Taiwan’s United Microelectronics Corporation noticed its quarterly revenues climb 5% quarter on quarter to $1.6 billion, whereas China’s SMIC rose 15% to $1.1 billion.
TrendForce expects the chip foundries to see additional income progress as the worth of the chip wafers they produce continues to rise and demand persists.
It mentioned the quarterly complete income of the highest 10 foundries will “once again reach a historical high” by present process a 1-3% improve quarter-on-quarter for the second quarter of 2021.
