TSMC, Samsung Likely To Feel Pinch Of Global Foundry Industry Slowdown In 2023: Report

  • The global contract chipmaking revenue will likely fall by 4% in 2023 year-on-year on a pandemic recovery-driven demand correction for the advanced chips that contributed to the fortunes of Taiwan Semiconductor Manufacturing Company Ltd TSM and Samsung Electronics Co, Ltd SSNLF.
  • The foundry sales grew by an estimated 28.1% Y/Y in 2022.
  • Major design houses are already cutting the use of wafers this quarter with no signs of a significant rebound in orders, and foundries may see a more profound drop in demand next quarter, Bloomberg reports.
  • The global economy struggled with the rising central bank interest rates, China's attempt to rebound from its COVID lockdowns, and ongoing Russia's war in Ukraine. 
  • Global tech giants also slashed spending as pandemic-era demand in e-commerce and remote work cooled down.
  • RelatedTSMC Guides To Below-Consensus Q1 Amid Continued End Market Weakness, Inventory Corrections
  • TrendForce analyst Joanne Chiao said, "The recovery of individual foundries' capacity utilization rates will not occur as quickly as expected."
  • The foundry industry was worth $130 billion as of 2022, TrendForce estimated. TSMC led the sector, with the most prominent memory chipmaker, Samsung trailing in second position, the report adds. 
  • Korea's exports of semiconductors are likely to fall 15% in 2023 Y/Y, the report cited the Korea International Trade Association, to the dismay of Samsung.
  • Also ReadSamsung Sees Q4 Profit Plunge 69% As Pandemic Correction And Macro Headwinds Weigh
  • Price Action: TSM shares traded lower by 0.89% at $88.67 in the premarket on the last check Thursday.
  • Photo Via Wikimedia Commons
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