Foundry Revenue Hits Record Anew with 6% QoQ Growth in 2Q 2021

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Foundry revenue for the quarter reached $24.407 billion, representing a 6.2% QoQ increase and yet another record high for the eighth consecutive quarter since 3Q 2019.

www.eetasia.com, Sept. 01, 2021 – 

The panic buying of chips persisted in 2Q 2021 owing to factors such as post-pandemic demand, industry-wide shift to 5G telecom technology, geopolitical tensions, and chronic chip shortages, according to TrendForce's latest investigations. Chip demand from ODMs/OEMs remained high, as they were unable to meet shipment targets for various end-products due to the shortage of foundry capacities. In addition, wafers inputted in 1Q 2021 underwent a price hike and were subsequently outputted in 2Q 2021.

Foundry revenue for the quarter reached $24.407 billion, representing a 6.2% QoQ increase and yet another record high for the eighth consecutive quarter since 3Q 2019.

Power outages hinder revenue growths of TSMC and Samsung

For 2Q 2021, TSMC once again comfortably dwarfed other foundries with a revenue of $13.3 billion, a 3.1% QoQ increase. TSMC's relatively muted growth can be attributed to several factors, the most prominent of which was a power outage that occurred in TSMC's Fab14 P7, located in the Southern Taiwan Science Park, in April. The power outage subsequently caused some wafers at the 40nm and 16nm nodes to be discarded. TSMC's fab in the Southern Taiwan Science Park suffered yet another disruption when Taipower's Kaohsiung-based Hsinta Power Plant temporarily went offline in May. Although the fab immediately resumed operations via its emergency power generators so that no wafers in the production lines were discarded, certain wafers still needed to be reworked. Finally, TSMC maintained its longstanding strategy of giving consistent price quotes for its foundry services. Hence, although the foundry's revenue for 2Q 2021 exceeded the upper end of its prior financial guidance, its revenue for the quarter underwent a slightly lower QoQ growth compared to other foundries, and it also lost some market share to competitors.

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