Industry: China Taiwan foundry Q1 revenue may exceed expectations, TSMC, the world's advanced most benefit
Apr 08,2022
First-quarter revenue for Taiwanese foundries, including TSMC and World Advanced, could hit the highs of guidance or even beat expectations, industry sources said. Among them, TSMC and the world's advanced may be the biggest beneficiaries.
According to Digitimes, TSMC, UMC, World Advanced, and NSMC are about to announce their revenue for March 2022. The four logic chip fabs have all extended orders beyond 2023 and are actively promoting capacity expansion, the sources said.
In particular, TSMC and World Advanced, a foundry that produces only 8-inch wafers, are expected to see significant revenue growth through 2025, the person noted. The two foundries will enjoy strong customer orders even as additional capacity from the other foundries comes online.
Despite recent reports that Android smartphone makers are cutting their shipment targets for the first half of 2022, sources said TSMC has not been notified of any wafer production cuts from MediaTek, a major customer of its Android smartphone chips.
In addition, TSMC has received a large number of 5nm chip orders from Qualcomm and Nvidia, as well as 7nm process orders from Intel, and order commitments for Apple's new Mac series. TSMC's revenue and gross profit margin will hit new highs in the first quarter of 2022, the person said.
In terms of world advancement, the foundry is determined to be the biggest beneficiary of the tight-supply 8-inch foundry market, which is likely to remain a seller's market for years to come. World Advanced has secured long-term order commitments from major customers and continues to improve its product mix to increase profitability.
According to Digitimes, TSMC, UMC, World Advanced, and NSMC are about to announce their revenue for March 2022. The four logic chip fabs have all extended orders beyond 2023 and are actively promoting capacity expansion, the sources said.
In particular, TSMC and World Advanced, a foundry that produces only 8-inch wafers, are expected to see significant revenue growth through 2025, the person noted. The two foundries will enjoy strong customer orders even as additional capacity from the other foundries comes online.
Despite recent reports that Android smartphone makers are cutting their shipment targets for the first half of 2022, sources said TSMC has not been notified of any wafer production cuts from MediaTek, a major customer of its Android smartphone chips.
In addition, TSMC has received a large number of 5nm chip orders from Qualcomm and Nvidia, as well as 7nm process orders from Intel, and order commitments for Apple's new Mac series. TSMC's revenue and gross profit margin will hit new highs in the first quarter of 2022, the person said.
In terms of world advancement, the foundry is determined to be the biggest beneficiary of the tight-supply 8-inch foundry market, which is likely to remain a seller's market for years to come. World Advanced has secured long-term order commitments from major customers and continues to improve its product mix to increase profitability.