Published in News

Weak third quarter for IC foundries

by on25 September 2015


Even TSMC

Taiwan's top-three IC foundries are seeing a weak third quarter with their combined revenues set to decrease and 3.7 per cent on year.

Beancounters at Digitimes Research said that the combined revenues of Taiwan's major foundries including TSMC, UMC and VIS are forecast to reach US$8.03 billion in the third quarter of 2015.This is down from US$8.09 billion in the prior quarter and US$8.33 billion a year earlier.

Mobile chip suppliers started to slow down the pace of orders in the second quarter due to disappointing end-market demand, and have been engaged in inventory adjustments.

This led to the lower combined revenues from Taiwan's top foundries in the third quarter despite the period being the traditionally peak season.

Taiwan's top foundries will see their combined ASPs rise in the third quarter thanks to an increase in the revenue ratio for advanced 45/40nm and below processes, Digitimes Research said.

TSMC's 16nm process technology has started generating revenues in the third quarter of 2015. The foundry set better growth in revenues from its 16nm node manufacturing in the fourth quarter.
Backend houses including ASE and Siliconware Precision  are worried and are likely to deliver a cautious outlook for fourth-quarter 2015 and first-quarter 2016. Both companies' cumulative 2015 revenues have smaller on-year growth rates in recent months.

ASE warned that inventory adjustments in the semiconductor industry would be under control in the second half of 2015. SPIL also warned of low order visibility for the second half of 2015.It said that there was uncertainty over end-market demand.

Last modified on 25 September 2015
Rate this item
(1 Vote)

Read more about: