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Insights Tag： Semiconductors
Global Semiconductor Foundry Market Share: Quarterly
Global Semiconductor Foundry Revenue Share: Q3 2023
Published Date: November 30, 2023
This page shows the quarterly revenue share for the top players in the global semiconductor foundry market from Q1 2022 to Q3 2023.
| Global Foundry Market Share (%) | Q1 2022 |
Q2 2022 |
Q3 2022 |
Q4 2022 |
Q1 2023 |
Q2 2023 |
Q3 2023 |
| TSMC | 54% | 56% | 59% | 59% | 59% | 57% | 59% |
| Samsung Foundry* | 15% | 13% | 12% | 13% | 13% | 14% | 13% |
| UMC | 7% | 8% | 7% | 7% | 6% | 7% | 6% |
| GlobalFoundries | 6% | 6% | 6% | 6% | 7% | 7% | 6% |
| SMIC | 6% | 6% | 6% | 5% | 5% | 6% | 6% |
| Others | 12% | 11% | 10% | 10% | 10% | 9% | 10% |
(*) 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 Q3 2023:
- TSMC recorded sequential growth in revenue in Q3 2023, helped by positive signs of recovery in the PC and smartphone markets, along with early signs of demand stabilization.
- Automotive and industrial applications underwent inventory corrections in Q3 2023, and we expect the inventory correction period to linger into Q1 2024.
- AI chip demand was robust in Q3 2023 and will remain strong in Q4 2023, evident from the AI GPU shortage. We believe this trend will extend into 2024.
- Recovery in advanced nodes is expected to surpass mature nodes in terms of capacity utilization rate. Mature node foundries will face challenges from low utilization rates and increasing price competition going forward.
Read our foundry quarterly report for Q3 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.
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Counterpoint Quarterly: IoT Q3 2023
Counterpoint
Quarterly
IoT EDITION
PDF | 31 pages
Published date: November 6th 2023
Current clients, click here!
If you are a current client, this report is available for you on our Research Portal. Click on the user icon to access the PDF page.
KEY HIGHLIGHTS
-
Infographic: Mobile Market Monitor
(Q1 and Q2 2023) -
Global Smartphone Shipments Market Data
(Q3 2021 – Q2 2023) -
China Smartphone Shipments Market Data
(Q1 2022 – Q2 2023) -
US Smartphone Shipments Market Data
(Q1 2022 – Q2 2023) -
India Smartphone Shipments Market Data
(Q1 2022 – Q2 2023)
CONTRIBUTORS
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MediaTek’s Q3 2023 Revenue Up 9% QoQ as Inventory Levels Normalize
- MediaTek witnessed robust sequential growth in Q3 due to customers restocking inventory.
- Inventory declined to a healthy level of 90 days during the quarter.
- 3nm SoC shipments set to start in H2 2024
- Auto pipeline remains the same over $1 billion
MediaTek’s revenue increased 9% QoQ in Q3 2023, highlighting a good quarter, despite a YoY decline. This sequential growth was largely driven by inventory restocking by smartphone OEMs and new 4G and 5G model launches. The demand for wireless and wired connectivity grew sequentially with shipments reaching a quarterly record. Also, the inventory situation has gradually improved, coming down to a steady level of 90 days compared to 115 days in the previous quarter. The company is aiming to launch the 3nm chipset in H2 2023.
Long-term growth potential in computing, edge AI and Auto segment
CEO Rick Tsai: “For the future, the increasing computing capabilities, the proliferation of edge AI, and the higher adoption of semiconductor content for automotive will provide strong growth opportunities for MediaTek. For AI, we believe the increasing demand for cloud AI will create a complementary demand for edge AI, and, the more edge AI, the better cloud AI.”
Shivani Parashar’s analyst take: “MediaTek foresees strong growth potential in computing, edge AI, and automotive semiconductors. The company will focus on capabilities to integrate edge AI into SoCs for a wide range of applications, mostly for smartphones and the auto segment. MediaTek has already collaborated with NVIDIA in the automotive sector. The company is well positioned and plans to continue investing in successful segments. The expansion into new markets like AI and ARM computing, by leveraging its technological powers and partnerships with leading foundries, will help the company generate significant revenues in these segments.”
Customer and channel inventory returned to a normal level
CEO: “In the last few months, we’ve observed improvements in overall channel inventories, particularly with respect to smartphones. With prudent inventory management, we have reduced our inventory for five consecutive quarters. At the end of Q3 2023, our days of inventory has reached to a healthy level of 90 days. We expect the overall inventory environment to continue to improve in the coming quarters.”
Parv Sharma’s analyst take: “According to our supply chain checks, Channel level inventory is reducing and by H1 2024, the inventory will be at a normal level. The smartphone OEMs have started restocking the inventory, but still, they remain cautious due to weak consumer demand.”
5G penetration to increase in 2024
CFO David Ku: “We still got a few more months to get into 2024, but in general, I think the mix in terms of 4G versus 5G, our view is actually 5G will continue — for our own shipment perspective — 5G probably will increase and 4G will decline in terms of shipment compared to this year, 2024 versus 2023. Because 5G again next year, our view is the overall market will still witness double-digit percentage growth, 4G probably will be flattish to slightly down from the market demand perspective.”
Shivani Parashar’s analyst take: “We forecast that 5G penetration will increase in double-digit percentage in 2024. In anticipation of a shift from LTE to entry-level 5G smartphones, OEMs are expanding their 5G portfolio across price bands. Intense competition among OEMs, availability of cheaper 5G chipsets and declining prices of 5G devices will contribute to the growth of 5G chipsets. The 4G chipset will decline by low-single-digit percentage in 2024 compared with that in 2023.”
Result summary
- Growth in revenues: MediaTek’s Q3 2023 revenue rose 9% QoQ to reach $3.4 billion, but declined by 26% YoY. The sequential increase was mainly due to the growth in the mobile segment as smartphone OEMs started restocking inventory. The annual decline was largely due to end-demand weakness.
- Maintained mobile segment revenue due to 5G SoCs: The mobile phone segment declined by 34% YoY and increased by 16% QoQ to account for 49% of the company’s total revenue in Q3 2023. During the quarter, the demand for 5G SoCs improved and there were new 4G and 5G model launches. The new flagship Dimensity 9300 SoC will be launched in early November with enhanced CPU, GPU, and AI processing capabilities, supporting large language models in smartphones.
- New opportunities for smart edge: The smart edge segment accounted for 44% of the company’s revenue in Q3 2023, growing 2% sequentially. Wi-Fi 6 shipments increased in the quarter. Business opportunities are growing for the Wi-Fi 7 segment, with increasing adoption by high-end retail routers, premium notebooks and broadband devices.
- Power IC: The Power IC segment accounted for 7% of the company’s total revenue and grew by 9% sequentially in Q3 2023. PMIC for smartphones and PCs performed better in Q3 2023 due to restocking demand.
- Favorable guidance: MediaTek guided Q4 2023 revenue to be between $3.8 billion and $4.0 billion, growing 9%-15% sequentially. The gross margin is expected to be around 47% while the operating expense ratio is expected to be around 30% in Q2 2023. In Q4 2023, the mobile phone segment will grow faster than in Q3, largely due to the flagship launch. PMIC segments will remain flat and Smart Edge will witness a sequential decline in the Q4 due to seasonality and a cautious consumer electronics market.
- Auto pipeline remains the same: The automotive segment will see more significant revenue from 2026. The current auto design pipeline revenue for MediaTek is over $1 billion. The positive momentum and customer feedback will boost the company’s auto segment revenue in the next few quarters.
- Inventory turnover: Inventory declined to a normal level of 90 days from 115 days in the previous quarter and 111 days in the year-ago quarter. MediaTek expects the overall inventory environment to continue to improve in the coming quarters.
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Counterpoint Quarterly: IoT Q3 2023
Counterpoint
Quarterly
IoT EDITION
PDF | 31 pages
Published date: November 6th 2023
Current clients, click here!
If you are a current client, this report is available for you on our Research Portal. Click on the user icon to access the PDF page.
KEY HIGHLIGHTS
-
Infographic: Mobile Market Monitor
(Q1 and Q2 2023) -
Global Smartphone Shipments Market Data
(Q3 2021 – Q2 2023) -
China Smartphone Shipments Market Data
(Q1 2022 – Q2 2023) -
US Smartphone Shipments Market Data
(Q1 2022 – Q2 2023) -
India Smartphone Shipments Market Data
(Q1 2022 – Q2 2023)
CONTRIBUTORS
John Doe
Designer
John Doe
Designer
John Doe
Designer
John Doe
Designer
John Doe
Designer
John Doe
Designer
Counterpoint Quarterly: Smartphone Q3 2023
Counterpoint
Quarterly
SMARTPHONE EDITION
PDF | 114 pages
Published date: October 19th 2023
Current clients, click here!
If you are a current client, this report is available for you on our Research Portal. Click on the user icon to access the PDF page.
KEY HIGHLIGHTS
-
Infographic: Mobile Market Monitor
(Q1 and Q2 2023) -
Global Smartphone Shipments Market Data
(Q3 2021 – Q2 2023) -
China Smartphone Shipments Market Data
(Q1 2022 – Q2 2023) -
US Smartphone Shipments Market Data
(Q1 2022 – Q2 2023) -
India Smartphone Shipments Market Data
(Q1 2022 – Q2 2023)
CONTRIBUTORS
John Doe
Designer
John Doe
Designer
John Doe
Designer
John Doe
Designer
John Doe
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John Doe
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Infographic: Q2 2023 | Semiconductors, Foundry Share and Smartphone AP Share
Infographic: Semiconductors Top 7 in Q2 2023
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.
Use the button below to download the high resolution PDF of the infographic:
Infographic: Global Smartphone AP Share in Q2 2023
Global Smartphone AP Market Share by Shipments
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.
Global Smartphone AP Market Share by Revenue
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.
Use the button below to download the high resolution PDF of the infographic:
Infographic: Foundry Revenue Share in Q2 2023
Foundry Companies’ Share by Revenue
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.
Foundry Industry Share by Technology Node
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.
Use the button below to download the high resolution PDF of the infographic:
India’s Promising Semiconductor Manufacturing Trajectory
- India’s semiconductor market is expected to reach $64 billion by 2026 with the ‘telecom stack’ and industrial applications accounting for two-thirds of the total.
- India’s Central and State Governments are incentivizing more than 70% of the total cost in setting up a semiconductor manufacturing facility.
- The Central Government funds 50% of the project and has also earmarked outlays for R&D, skill development and training.
New Delhi, Beijing, Jakarta, London, Boston, Toronto, Taipei, Seoul – May 09, 2023
Invest India, the National Investment Promotion and Facilitation Agency, India Semiconductor Mission (ISM), and Counterpoint Research, recently hosted a series of webinars with key industry speakers to discuss the opportunities in India for establishing a semiconductor manufacturing base and in becoming a key destination for supply chain diversification.
The webinar covered four central topics, namely the semiconductor market across sectors and applications; government programs and incentives for foreign manufacturers; talent availability and initiatives for re-skilling; and the current infrastructural capabilities and support for semiconductor manufacturing.
With India’s semiconductor market expected to balloon to $64 billion by 2026, the country presents a considerable opportunity for global semiconductor manufacturing. India’s semiconductor market was valued at $22.7 billion in 2019, according to a joint report by Counterpoint Research and the India Electronics & Semiconductor Association (IESA). The 2026 forecast is set to be driven by both domestic and export markets with significant demand from the consumer electronics, telecom, IT hardware and industrial sectors. India’s ‘telecom stack’ and industrial applications are expected to account for two-thirds of the total.
India Semiconductor Market Size by Application
Meanwhile, components leveraging mature technology nodes (28nm and higher) are expected to see significant short-term opportunities as they support India’s growing automotive and industrial sectors.
“In the short term, there is a huge opportunity being driven by domestic demand across applications like sensors, logic chips and analog devices,” said Tarun Pathak, Research Director at Counterpoint.
He also said “Local sourcing is already happening in a significant way. It accounted for around 10% of the overall market in 2022.”
At the global level, the Government of India has committed to being a reliable partner in the semiconductor supply chain, introducing various incentives and programs that facilitate foreign investments across a broad array of sectors.
Mr. Amitesh Kumar Sinha, CEO of ISM and Joint Secretary, Ministry of Electronics and Information Technology, said, “India is committed to becoming a reliable partner in global supply chains and we are working towards that by framing long-term policies, keeping the next 25 years in mind.”
Mr. Sinha further added, “More than 70% of the project costs for semiconductor manufacturing are incentivized by the Central and State Governments in India of which 50% is funded by the Central Government on an upfront basis while the rest is covered by the State Governments.”
The Semicon India Program, which has an outlay of about $10 billion, funds 50% of the semiconductor manufacturing project costs with 2.5% of the budget earmarked for R&D, skill development and training.
Apart from market sizing and fiscal support, the fourth area addressed during the webinar was the existing infrastructural capabilities and the availability of a skilled workforce, materials supply and other parts of the local supply chain.
India’s own fabrication unit, Semiconductor Laboratory (SCL), provided an end-to-end case study emphasizing India’s supply chain’s robustness across utilities, materials and talent.
Dr. Manish Hooda, Head of Technology Development at SCL said, “SCL has been an end-to-end manufacturer for 30 years, providing products for space and railway applications. For the last 15 years, SCL has received uninterrupted power supply and stable, continuous flow of ultra-pure quality water, which highlights India’s readiness to support high-volume manufacturing of semiconductors.”
An edited version of the webinar recording can be found here.
Contacts:
Nupur Yadav
nupur.yadav@counterpointresearch.com
Rohan Thomas Abraham – Sector Lead, ESDM – Invest India
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About Counterpoint Research
Counterpoint Technology Market Research is a global research firm specializing in TMT. It services major technology and financial firms with data, monthly reports, and detailed analyses of key technology markets.
About Invest India
Invest India is the national investment promotion and facilitation agency of India. The agency’s team of domain and functional experts provide sector- and state-specific inputs, and hand-holding support to investors through the entire investment cycle, from pre-investment analysis and decision making to after care and grievance redressal. Additionally, all facilitation support to investors under the “Make in India” program is provided free of cost by Invest India.
Website: https://www.investindia.gov.in/
About India Semiconductor Mission (ISM)
India Semiconductor Mission (ISM) is a specialized and independent business division within the Government of India’s Digital India Corporation. The organization aims to build a vibrant semiconductor and display ecosystem in India to facilitate the country’s emergence as a global hub for electronics manufacturing and design. Led by global experts in the semiconductor and display ecosystem, ISM’s mission is to serve as a focal point for the comprehensive, coherent, efficient and smooth deployment of the Program for Development of Semiconductor and Display Ecosystem, in consultation with government ministries/departments/agencies, industry players and academia.
Website: https://ism.gov.in/
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Connected Car Sales Grew 12% YoY in 2022 With Volkswagen Group in Lead
- Volkswagen Group led in connected car sales, closely followed by Toyota Group.
- 4G cars captured more than 95% of connected car sales in 2022.
- Tesla broke into the top-10 connected car sales rankings for the first time.
New Delhi, London, San Diego, Buenos Aires, Hong Kong, Beijing, Seoul – April 24, 2023
Global connected car sales* grew 12% YoY in 2022 with the share of connected cars in the overall car sales exceeding 50%, according to the latest research from Counterpoint’s Smart Automotive Service. The US remained the strongest market for connected cars followed by China and Europe. These three markets accounted for nearly 80% of the total connected car sales globally in 2022. Despite having a relatively small share of connected car sales, Japan experienced the highest growth in connected car penetration.
Commenting on the market dynamics, Research Analyst Abhilash Gupta said, “The penetration of connectivity in cars improved during 2022 after struggling in 2020 and 2021. In 2022, new facelift versions of older models like the Honda Civic, Toyota Corolla, Ford Escape and Chevrolet Equinox were introduced with upgraded 4G connectivity and new features. Some prominent features include remote lock/unlock, remote engine start/stop, climate control, vehicle status, location tracking, geofencing, emergency assistance, in-cabin music, video streaming, and over-the-air updates. Next-generation vehicles are being introduced with various connected and autonomous features that require high-speed internet access available through 5G. However, as of now, 5G remains a niche, available only in premium cars like the Ford F-150 Lightning, Cadillac LYRIQ, Mercedes-Benz EQS, Audi e-tron GT, BMW iX and GWM Haval HG.”
Gupta added, “With consumers’ focus shifting to connectivity in the car, non-connected car shipments are steadily declining. The top five automotive groups accounted for nearly half of the connected cars sold in 2022. Volkswagen Group led the charts in terms of connected car sales volume, closely followed by Toyota Group. Tesla broke into the top 10 for the first time.”
Commenting on the market outlook, Senior Analyst Soumen Mandal said, “The shift towards digitization in cars is increasing at a rapid pace and is visible in the consistent rise of connected car penetration globally. Currently, 4G dominates the connected car market with almost 95% share. But as the automotive market is transitioning towards electrification, software-defined vehicles and autonomy, the need for seamless and faster in-vehicle connectivity will be fulfilled through 5G. By 2030, more than 90% of connected cars sold will have embedded 5G connectivity. Connected car sales are expected to grow at a CAGR of 13% between 2022 and 2030.”
* Sales here refer to wholesale figures, i.e. deliveries out of factories by respective brands, and consider only passenger cars with embedded connectivity.
The comprehensive and in-depth ‘Global Connected Car Tracker, Q1 2019-Q4 2022’ and ‘Global Connected Car Forecast, 2019-2030F’ are now available for purchase at report.counterpointresearch.com.
Feel free to reach us at press@counterpointresearch.com for questions regarding our latest research and insights.
Background
Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media, and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.
Analyst Contacts
Abhilash Gupta
Soumen Mandal
Peter Richardson
Counterpoint Research
press@counterpointresearch.com
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Will CHIPS Act Achieve US Goals?
- The legislation includes over $52 billion in subsidies for semiconductor manufacturing.
- So far, investments worth over $200 billion have been announced for manufacturing.
- New foundries from TSMC, Intel, Samsung, Micron and Texas Instruments are underway.
Last August, the US Congress passed the CHIPS Act, the largest piece of industrial policy signed into law in the US in a generation. The legislation includes over $52 billion in subsidies for semiconductor manufacturing. Over the past two decades, the share of semiconductors manufactured in the US has steadily fallen while advanced semiconductor manufacturing has become increasingly concentrated in just a handful of cities, primarily in Taiwan and South Korea.
The outbreak of COVID-19 wreaked havoc on supply chains as factories shuttered, while the fallout of an unexpected winter storm in Texas further disrupted semiconductor manufacturing. Compounded by an explosion of demand as companies, schools and government offices pivoted to work from home, the chip shortage set in, shaving a percentage off of GDP growth according to the White House. In summary, the events of the past few years have made abundantly clear the foundational role that semiconductors play in today’s economy, and the costs that accompany constrained supply.
All this triggered the finalization and passage of the CHIPS Act. The US government was convinced that the country’s supply of semiconductors, which power everything from washing machines, smartphones and cars to supercomputers and hypersonic missiles, faced an unacceptable bottleneck at a pivotal moment. The US is almost entirely dependent on Taiwan for the production of advanced chips even as cross-strait tensions reach new highs and US-China relations new lows. Indeed, concerns over a potential conflict in the South China Sea as well as between North Korea and South Korea, not to mention acts of God, impacting chip supplies convinced the US government about boosting the country’s semiconductor manufacturing. But with higher labor costs and plenty of red tape, semiconductor manufacturers needed added incentives to make the transition worthwhile. The CHIPS Act has done just that, sparking a wave of private investment.
Since the CHIPS Act was passed, investments worth over $200 billion have been announced for manufacturing capacity in the US, with new foundries underway from TSMC, Intel, Samsung, Micron and Texas Instruments. But while the CHIPS Act has lit the flame under private companies to act, some of the legislation’s provisions and shortcomings could lead to its undoing. These projects are faced with red tape and regulations that will cause them to linger before coming on line. Besides, while funding has been made available for workforce education and job training, the scale of the need for new employees and the lack of the required workers and skills will likely pain semiconductor firms for years to come. One solution would be to raise the number of visas available for skilled workers from abroad. Another would be to provide targeted assistance to students pursuing degrees in related fields. Finally, the Act itself fails to address the reason why semiconductor manufacturing left the US in the first place – American labor costs and regulations make production in the US more expensive than elsewhere. Once the funding runs dry, how will American semiconductor manufacturing remain competitive? Additional burdens on employers to guarantee union wages and provide child care certainly won’t make these projects anymore cost-competitive.
While flawed, the CHIPS Act is a major stepping stone to creating secure, resilient supply chains that will insulate the country from many outside shocks. This is a step in the right direction, but more must be done if the country wants to win the semiconductor manufacturing marathon and avoid fizzling out after the starting sprint.
For more information about the CHIPS Act, a detailed report on the legislation can be found here.
Additional Reading:
US Chips Act Takes New Form Before August Recess, Leaves Some Unhappy
UMC Q1 2023 Earnings: Weak Cyclical Recovery But 28nm Remains Resilient
Global Smartphone AP (Application Processor) Shipments Market Share: Q3 2021 to Q4 2022
Will Japan Curbs Hit China Semiconductor Self-reliance Plans?
