TSMC becomes No.1 Chip Company

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The memory market collapse has propelled TSMC to No.1 in the 3Q22 ranking, says IC insights.

www.electronicsweekly.com, Sept. 08, 2022 – 

Samsung drops to second place and Intel is expected to fall to third.

IC Insights has reduced its worldwide IC market growth forecast for 2022 from 11% to 7%.

The downgraded expectation for this year is almost entirely due to the collapse of the memory market in the second half of 2022.

Most memory companies expect this inventory adjustment period to extend into at least early 2023.

When Micron's fiscal 3Q ended in May, the company gave an early warning of the trouble that was brewing in the memory market.

Although the company's fiscal 3Q sales were solid, it presented 4Q (ending in August) sales guidance of -17%. Moreover, Micron revised this figure to at least a 21% drop in sales for its fiscal quarter that ended in August.

In its 2Q conference call, major NAND flash memory supplier Western Digital commented that the inventory adjustment currently underway is "definitely very, very sharp in the quarter we are in (3Q22)."

Western Digital's outlook is for a company-wide sales decline of 18% this quarter. With hard disk drives (HDDs) making up about half of the company's sales and expected to show only a modest decline in 3Q, IC Insights believes that its NAND flash business is likely to register a drop of at least 20% this quarter.

In early September, Kyung Kye-hyun, Samsung's co-CEO and head of its semiconductor unit said, "The second half of this year looks bad, and as of now, next year doesn't really seem to show a clear momentum for much improvement."

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