[News] TSMC Introduces “Foundry 2.0” to Include Packaging, Testing, Mask making and Others

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In the Q2 earnings call today (July 18th), TSMC Chairman and CEO C.C. Wei introduced the concept of “Foundry 2.0,” redefining the foundry industry to further include sectors like packaging, testing, mask making, and others, the latest report by Technews noted.

C.C. Wei pointed out that under this new definition, TSMC’s foundry market share was 28% in 2023, and the foundry industry is expected to grow by 10% in 2024, while TSMC’s share will increase further. According to data from TrendForce, under the original definition of foundry, TSMC’s market share was 61.2%.

On the other hand, the semiconductor giant projects the entire semiconductor market, excluding memory, to grow by 10% in 2024.

TSMC’s CFO and spokesperson Wendell Huang explained that the reason for TSMC to propose “Foundry 2.0” is due to the involvement of IDM manufacturers in the foundry market, which has blurred the boundaries of the traditional foundry industry.

Moreover, C.C. Wei highlighted the strong demand for TSMC’s 3nm and 5nm processes. Thanks to the strong demand from AI and smartphones for advanced nodes, Wei believes that 2024 will be a strong year for TSMC. Meanwhile, the company also expects this year’s financial forecast and revenue to increase by 24-26% (mid-20%).

TSMC’s 3nm process accounted for 15% of wafer sales revenue in the second quarter of 2024, while 5nm and 7nm accounted for 35% and 17%, respectively. Overall, revenue from advanced processes (7nm and below) reached 67% of total wafer sales revenue for the quarter.

Read more

• [News] TSMC Projects 7.5% Q3 Revenue Growth, Adjusts Full-Year CAPEX Range
• [News] TSMC Reports Strong Q2 Financial Results, with 3nm Accounting for 15% of Shipments

(Photo credit: TSMC)