[News] Financial Reports of Six Major Foundries Reveal Semiconductor Industry Recovery Status

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The latest financial reports for 4Q23 from six leading global semiconductor foundries signal optimism for the semiconductor industry’s recovery in 2024.

In 2023, the semiconductor sector underwent significant adjustments. As the industry worked towards normalizing its inventory levels amidst ongoing high inflation risks, the short-term market outlook remained unclear. #TrendForce has analyzed the latest financials from these six foundries to provide insights into what 2024 might hold for the industry.

TSMC

TSMC reported a slight YoY revenue decrease of 1.5% to US$19.62 billion in 4Q23, though it saw a 13.6% increase from the previous quarter. With an anticipated CAGR of 15–20%, TSMC’s 2024 capital expenditures are expected to be between $28 billion and $32 billion.

The company forecasts more than 10% growth in the semiconductor market (excluding memory) and around 20% growth in the wafer fabrication sector for 2024.

Samsung Electronics

Samsung Electronics’ 4Q23 consolidated revenue fell 3.81% YoY to ₩67.78 trillion. Its DS division reported revenues of ₩21.69 trillion but faced an operating loss of ₩2.18 trillion.

Despite the challenges, Samsung is focusing on advancing 3nm and 2nm GAA process technologies, expecting a revival in smartphone and PC demand in 2024 to rejuvenate the foundry market to its former prosperity.

Intel

Intel’s 4Q23 earnings saw a 10% revenue increase to $15.406 billion, with its foundry business, Intel Foundry Services, jumping 63% to $291 million in revenue.

Despite seasonal demand slumps in its core PC and server segments, Intel’s AI chips have accumulated $2 billion in orders, with sales forecast to improve in the second half of the year.

Global Foundries

GlobalFoundries reported a 12% revenue drop in 4Q23 to $1.85 billion, with a net income of $356 million. The company anticipates 1Q24 revenues to range between $1.5 billion and $1.54 billion, primarily due to the current industry-wide chip inventory adjustments.

Nevertheless, GlobalFoundries expects its 2023 automotive market revenue to surpass $1 billion, forecasting continued growth into 2024.

UMC

UMC disclosed a 19% YoY decrease in 4Q23 revenues to $1.79 billion. The company cited an extended semiconductor industry inventory adjustment period due to a challenging global economic climate, leading to a slight reduction in wafer shipments and capacity utilization. UMC expects a gradual uptick in wafer demand through 1Q24.

SMIC

SMIC reported a modest increase in 4Q23 revenues to $1.68 billion, with a 0-2% growth projection for 1Q24. Despite last year’s cyclical lows and competitive pressures, SMIC anticipates its 2024 revenue growth will at least match the industry average, with capital expenditures mirroring those of 2023.

TrendForce had earlier forecasted a delayed recovery in the end-market by the fourth quarter of 2023. However, they noted that inventory stocking by Chinese Android firms for the year-end sales rush—particularly for mid-to-low-end 5G and 4G smartphone application processors—alongside the influence of new Apple iPhone releases, might surpass initial expectations.

This indicates that the revenues of the world’s top ten semiconductor foundries are poised for growth, potentially surpassing the growth rates observed in the third quarter.

(Photo credit: Samsung)