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Annual Foundry Revenue Expected to Reach Historical High in 2022
As TSMC leads yet another round of price hikes across the industry, annual foundry revenue for 2022 will likely reach $117.69 billion, up by 13.3% YoY.
www.eetasia.com, Oct. 29, 2021 –
While the global electronics supply chain experienced a chip shortage, the corresponding shortage of foundry capacities also led various foundries to raise their quotes, resulting in an over 20% year-on-year (YoY) increase in the total annual revenues of the top 10 foundries for both 2020 and 2021, according to TrendForce.
The top 10 foundries' annual revenue for 2021 is now expected to surpass $100 billion. As TSMC leads yet another round of price hikes across the industry, annual foundry revenue for 2022 will likely reach $117.69 billion, a 13.3% YoY increase.
Foundries will gradually kick off production with newly added capacities in 2H22 in response to the ongoing chip shortage
TrendForce indicates that the combined CAPEX of the top 10 foundries surpassed $50 billion in 2021, a 43% YoY increase. As new fab constructions and equipment move-ins gradually conclude next year, their combined CAPEX for 2022 is expected to undergo a 15% YoY increase and fall within the $50-60 billion range. In addition, now that TSMC has officially announced the establishment of a new fab in Japan, total foundry CAPEX will likely increase further next year. TrendForce expects the foundry industry's total 8-inch and 12-inch wafer capacities to increase by 6% YoY and 14% YoY next year, respectively.
Although the manufacturing costs of 8-inch and 12-inch wafer fabrication equipment are roughly equal, the ASP of 8-inch wafers falls short compared with 12-inch wafers, meaning it is generally less cost-effective for foundries to expand their 8-inch wafer capacities. That is why the increase in 8-inch capacity is also expected to fall short of the increase in 12-inch capacity next year. Regarding 12-inch wafer foundry services, the 1Xnm and more mature nodes, which currently represent the most severe shortage among all manufacturing process technologies, will account for more than 50% of the newly added wafer capacities next year. On the other hand, while Chinese foundries, such as Hua Hong Wuxi and Nexchip, account for most of the newly added 12-inch wafer capacities this year, TSMC and UMC will comprise the majority of 12-inch wafer capacity expansions in 2022. These two foundries will primarily focus on expanding the production capacities allocated to the 40nm and 28nm nodes, both of which are currently in extreme shortage. As a result, the ongoing chip shortage will likely be alleviated somewhat in 2022.
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