Intel maintained #1 place in Q2 2023 amid memory market slow down, which dragged down major memory players performance such as Samsung, SK Hynix and Micron. In addition, Nvidia took over the second place from Samsung due to the revenue booming on its data center business supported by strong AI server demand. Nvidia expects to see another wave of revenue growth in the upcoming quarter which could make its revenue expand again. Qualcomm’s revenue was capped by looming handset revenue and thus ranked #4 in the quarter. Broadcom and AMD’s revenues were relative resilient amid demand uncertainty.
MediaTek dominated the smartphone SoC market with a share of 30% in Q2 2023. MediaTek’s shipments slightly increased in Q2 2023 as the inventory levels came down and the competition is growing in the entry level 5G. New smartphone launches in the low and mid-end segments have increased the shipments in Dimensity 6000, Dimensity 7000 series. Qualcomm captured a 29% share in the quarter. Qualcomm shipments increased by 14.5% sequentially in Q2 2023 due to the high shipment for flagship chipset Snapdragon 8 Gen 2. Also, Key design wins for the Snapdragon 600 and 400 series have also contributed to the growth of Qualcomm’s shipment in Q2 2023.
Qualcomm dominated the AP market in Q2 2023 with a 40% revenue share. This growth is coming from the premium segment due to the adoption of snapdragon 8 gen 2 in Samsung flagship smartphones and Chinese OEMs. The launch of the Samsung Flip and Fold series has also contributed to this growth. Apple had a 33% share in the AP SoC market in Q2 2023 in terms of revenue. Apple’s share declined by 24% QoQ due to seasonality. The iPhone Pro series is doing better. MediaTek captured the third position with a share of 16% in the total global smartphone AP/SoC revenues. MediaTek revenue remained flat in Q2 2023 due to the weak demand and slow China market.
TSMC maintained its leadership in the foundry market with a stable 59% market share in Q2 2023. In contrast, Samsung Foundry’s market share dipped by nearly 1% to 11%, primarily due to ongoing smartphone inventory adjustments and the loss of smartphone AP SoC orders from a US client. On the other hand, UMC saw an increase in market share, driven by the continued strength of DDICs and automotive applications in Q2 2023.
In Q2 2023, the 5/4nm segment continued to dominate the market, holding a significant 21% market share. This strength was driven by robust demand, particularly in the field of AI, with key customers like Nvidia and Broadcom fueling this momentum. In contrast, the 7/6nm segment experienced weakness due to a slower-than-expected recovery in the smartphone market. On the other hand, the 28/22nm segment remained robust, as demand for primary applications, including DDIC and automotive-related applications, remained strong throughout Q2 2023.
Published Date: September 12, 2023
This page shows the quarterly revenue share for the top players in the global semiconductor foundry market from Q4 2021 to Q2 2023.
|Global Semiconductor Foundry Revenue Share (%)||Q4
(*) Samsung includes foundry service for its internal logic IC business
This page provides a view on the global foundries revenue share from 2021 till 2023. Here are some highlights from Q2 2023:
Read our foundry quarterly report for Q2 2023 here.
For detailed insights on the data, please reach out to us at sales(at)counterpointresearch.com. If you are a member of the press, please contact us at press(at)counterpointresearch.com for any media enquiries.
San Jose, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – June 12, 2023
Wafer fab equipment (WFE) manufacturers’ revenue increased 9% YoY to a record $120 billion in 2022 despite the macroeconomic slowdown, currency fluctuations, component shortages and logistics disruptions. The increase was due to continued strength in investments by customers for both leading and mature node devices across segments, including IoT, AI, HPC, automotive and 5G. The top five suppliers’ systems and service revenue increased to a record $95 billion.
The WFE market’s revenue is expected to decline 10% YoY in 2023 to $108.45 billion after three consecutive years of growth. Despite a weaker WFE backdrop for 2023, the EUV lithography outlook remains strong due to the continued penetration of EUV into memory and logic, and foundries ramping up production of 3nm process nodes by applying Gate-All-Around transistor and FinFET architectures with increased EUV technology adoption.
Associate Director Dale Gai said, “During the past six months, TSMC has pushed out new capacities in 7/6nm and 5/4nm in the light of weaker market demand, while the capital spending on 3nm remains nearly the same as it planned at the beginning of 2023.”
Source: Wafer Fab Equipment Revenue Tracker, Counterpoint Research
Commenting on the WFE market, Senior Analyst Ashwath Rao said, “The size of the WFE market in US dollar terms contracted by more than 8% in 2022 due to the impact of currency fluctuations, especially depreciation in the yen and euro-denominated sales since the beginning of 2022. Increased R&D spending in 2022 ahead of the inflection positions the WFE market to outperform the semiconductor market in the long term as these new technologies transition to volume manufacturing.”
Commenting on the market dynamics playing out in 2023, Rao said, “Manufacturers are more skewed towards foundry-logic segments today unlike in 2019, and with overall backlog strength, increased visibility in terms of long-term agreements and subscription model will help limit the downside. The weakness in wafer fab equipment spending in 2023 will drive lead time and inventory normalization. The slowdown in memory-oriented investments will begin to recover gradually starting in the second half of 2023, and 2024 will be a big year for the equipment industry. Manufacturers are well positioned to take advantage of the opportunity.”
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United Microelectronics (UMC) reported $1.78 billion in revenue for Q1 2023, down 14.5% YoY and 20.1% QoQ, constrained by sluggish wafer demand and the continuing customer inventory digestion. Despite the utilization rate dropping to 70%, the average selling price (ASP) was still stable. The gross profit margin remained firm at 35.5% due to cost reduction and product mix optimization. The management indicated that demand recovery has not been strong in PCs, smartphones and consumer applications, and customer inventory digestion has been slower than expected.
The automotive business was one of the key drivers that posted growth in Q1 2023, contributing to 17% of total revenue in the quarter. Revenue from integrated device manufacturer (IDM) customers also increased to 23% in Q1 2023 from 19% in Q4 2022 helped by growth in the automotive business. However, management pointed out that revenue from automotive applications may have peaked in Q1 2023 because it has been strong for three consecutive quarters since H2 2022. Nevertheless, the automotive segment is still a long-term growth driver for UMC.
The utilization rate of 28nm node in Q1 2023 was relatively higher compared to other nodes despite inventory correction in the communication segment. The management guided 28nm’s utilization rate to gradually improve and exceed 90% level by the end of 2023, supported by the demand for OLED display driver ICs, digital TVs and Wi-Fi 6/6E. UMC 28nm delivers better power consumption and performance versus competitors, which strengthens the company’s value proposition to customers. The management believes the technology leadership will reflect on its 28nm market share.
UMC reiterated its capital spending guidance of $3 billion for 2023. As for allocation, 90% will be used for 12-inch wafers and 10% for 8-inch wafers. Most of the capital spending will be on 12A P6 for the 28nm capacity. The capacity will reach 12kwpm by the end of 2023 with customer commitments on track, echoing the management’s positive demand outlook for OLED display driver ICs, digital TVs and Wi-Fi 6/6E. The remaining capital will be spent on 12i P3 in Singapore.
UMC has forecasted wafer shipment and ASP to be flat QoQ in Q2 2023 with utilization rate guided at low 70% and gross margin at mid-30%. The management pointed out that customer inventory digestion in semiconductors will continue to linger in Q2 2023 with limited visibility into H2 2023. However, the management is still positive on the 28nm demand outlook and the structural long-term growth trend in automotive applications driven by electrification and digitalization. The company will continue to work on cost control and product mix optimization to improve profitability during the semiconductor down cycle.
Joining the US-led effort to restrict chipmaking equipment exports to China, Japan has put in place restrictions that are more draconian than that of the US and where the Japanese state has effectively taken control of the country’s semiconductor capital equipment market.
Micron: A display of weakness
(This guest post was written by Richard Windsor, our Research Director at Large. This first appeared on Radio Free Mobile. All views expressed are Richard’s own.)
Samsung again took the #1 place in the quarter, though its semiconductor revenue suffered headwinds on memory business performance, largely due to customers’ inventory adjustments. Intel’s revenue remained flattish compared to the previous quarter, as customers have relatively conservative views on both consumer and commercial markets. Overall, memory players reported soft results on inventory correction. Qualcomm and Broadcom, on the other hand, reported comparatively solid revenues on outperformance in the mobile/IoT and wireless/data center/broadband segments, with the former taking third place in the quarter.
MediaTek dominated the smartphone SoC market with a share of 35%. It leads the low-mid-tier wholesale price segment, driven by the Helio G series and Dimensity 700 series. There was a decline in MediaTek shipments in Q3 2022 compared to the previous quarter due to ongoing customer inventory adjustments, global macroeconomic conditions and weak China market. Qualcomm captured a 29% share in the quarter. The company maintained its position in the premium segment despite tough macroeconomic conditions and declining smartphone market.
Qualcomm dominated the AP market in Q3 2022 with a 40% revenue share. Qualcomm’s share grew 29% YoY driven by the higher premium mix, which led to growth in the ASPs. The addition of the Snapdragon 8 Gen1 Plus in premium segments and a long-term agreement with Samsung for premium segment phones has driven the premium tier’s growth.
Apple had a 28% share in the AP SoC market in Q3 2022 in terms of revenue. Apple’s smartphone revenue increased 4 % in Q3 2022 due to the launch of the new iPhone 14 Pro and its variants with the A16 Bionic chip. MediaTek captured a 21% share in the AP market. MediaTek’s revenues declined slightly YoY in Q3 2022 due to order cuts from major Chinese OEMs.
TSMC was the winner in Q3 2022 by gaining 200-300bps of market share, driven by a significant ramp-up of 4/5nm products including new iPhones AP (A16) and AMD/NVIDIA’s new HPC chips. Samsung’s sales were negatively impacted by the order cuts for Android smartphone SoCs and GPUs. Other foundries, including UMC, GF and SMIC, were relatively stable on both utilization rate and average wafer price during the quarter. Some wafer demand declined sharply, like in the case of DDIC and low-end CIS, lowering the sales on legacy 8-inch foundry vendors.
5/4nm replaced 7/6nm as the largest technology nodes in Q3 2022 foundry sales, as TSMC contributed over 80% of 5/4nm sales. On the other hand, we observed the weakness of 7/6nm due
to slowing mid-end smartphone and discrete GPU (dGPU) sell-through in the supply chain as the inventory correction cycle seemed just in the beginning. For matured nodes, demand on 22/28nm stayed solid due to increasing new applications/new products, including wireless, MCU and driver ICs.
GlobalFoundries has reported strong Q3 2022 numbers with its revenue growing 22% YoY to $2.074 billion, driven by an increase in wafer shipments, richer mix of products and rise in average selling price (ASP).
The company’s focus on high-growth megatrends in the automotive and industrial segment, along with its enabling specialty semiconductor manufacturing capabilities and advancing innovation and production of next-generation GaN chips, will further aid in broadening GlobalFoundries’ portfolio of feature-rich and enablement solutions and maximize revenue in the long term.
Source: GlobalFoundries Earnings, Counterpoint Research
Segment-wise details: Home and industrial IoT to be the fastest-growing end market in 2022.
Source: GlobalFoundries Earnings, Counterpoint Research
Q3 key announcements and analysis