Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is expected to grow its revenue by about 25 percent to a new record high next year, driven by robust demand for advanced technologies used in artificial intelligence (AI) applications and crypto mining, International Data Corp (IDC) said yesterday.
That would see TSMC secure a 67 percent share of the world’s foundry market next year, from 64 percent this year, IDC senior semiconductor research manager Galen Zeng (曾冠瑋) predicted. In the broader foundry definition, TSMC would see its market share rise to 36 percent next year from 33 percent this year, he said.
To address concerns about its market dominance, TSMC in July created a new definition of the foundry market, called Foundry 2.0, which includes chip packaging, testing, mask making and all integrated device manufacturers (IDM) such as Intel Corp, but excludes memorychip makers.
Photo: Cheng I-hwa, AFP
“TSMC will continue to dominate the foundry market either by the definition of Foundry 1.0 or Foundry 2.0,” Zeng said.
TSMC, the world’s biggest contract chipmaker, is fast-tracking production of 3-nanometer, 4-nanometer and 5-nanometer chips to catch up with customers’ demand by performing “super-hot-run” production cycle, the shortest production cycle adopted for rush orders, Zeng said, adding that the utilization rate of those technology nodes stood at more than 95 percent.
The Hsinchu-based chipmaker is to add 70,000 advanced wafers a month next year to existing capacity for 2-nanometer, 3-nanometer, 4-nanometer and 5-nanometer chips, he said.
TSMC is also expected to double its capacity of advanced packaging technology, or chip-on-wafer-on-silicon (CoWoS), mostly used in AI chips for Nvidia Corp, to 660,000 units next year, from 330,000 units this year, Zeng said.
Even so, its CoWoS capacity would remain insufficient next year, he said.
IDC also projects the world’s semiconductor industry would expand 15 percent in production value to US$782 billion, while the global foundry segment would grow 20 percent next year, he said.
Samsung Electronics Inc is expected to ramp up production of 2-nanometer technology next year, IDC said. Samsung’s move would be earlier than TSMC by half to one quarter, but the company has to address the issue of its low yield rate, it said.
TSMC is expected to enter volume production of 2-nanometer technology in the second half of next year, with a small volume shipped to Apple Inc at the end of the year or early 2026, IDC said.
EXTRATERRITORIAL REACH: China extended its legal jurisdiction to ban some dual-use goods of Chinese origin from being sold to the US, even by third countries Beijing has set out to extend its domestic laws across international borders with a ban on selling some goods to the US that applies to companies both inside and outside China. The new export control rules are China’s first attempt to replicate the extraterritorial reach of US and European sanctions by covering Chinese products or goods with Chinese parts in them. In an announcement this week, China declared it is banning the sale of dual-use items to the US military and also the export to the US of materials such as gallium and germanium. Companies and people overseas would be subject to
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) founder Morris Chang (張忠謀) yesterday said that Intel Corp would find itself in the same predicament as it did four years ago if its board does not come up with a core business strategy. Chang made the remarks in response to reporters’ questions about the ailing US chipmaker, once an archrival of TSMC, during a news conference in Taipei for the launch of the second volume of his autobiography. Intel unexpectedly announced the immediate retirement of former chief executive officer Pat Gelsinger last week, ending his nearly four-year tenure and ending his attempts to revive the
WORLD DOMINATION: TSMC’s lead over second-placed Samsung has grown as the latter faces increased Chinese competition and the end of clients’ product life cycles Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) retained the No. 1 title in the global pure-play wafer foundry business in the third quarter of this year, seeing its market share growing to 64.9 percent to leave South Korea’s Samsung Electronics Co, the No. 2 supplier, further behind, Taipei-based TrendForce Corp (集邦科技) said in a report. TSMC posted US$23.53 billion in sales in the July-September period, up 13.0 percent from a quarter earlier, which boosted its market share to 64.9 percent, up from 62.3 percent in the second quarter, the report issued on Monday last week showed. TSMC benefited from the debut of flagship
TENSE TIMES: Formosa Plastics sees uncertainty surrounding the incoming Trump administration in the US, geopolitical tensions and China’s faltering economy Formosa Plastics Group (台塑集團), Taiwan’s largest industrial conglomerate, yesterday posted overall revenue of NT$118.61 billion (US$3.66 billion) for last month, marking a 7.2 percent rise from October, but a 2.5 percent fall from one year earlier. The group has mixed views about its business outlook for the current quarter and beyond, as uncertainty builds over the US power transition and geopolitical tensions. Formosa Plastics Corp (台灣塑膠), a vertically integrated supplier of plastic resins and petrochemicals, reported a monthly uptick of 15.3 percent in its revenue to NT$18.15 billion, as Typhoon Kong-rey postponed partial shipments slated for October and last month, it said. The
RSS