Due to the growing demand for various end devices, manufacturers are increasing their purchases of components, as a result of which, starting from 2020, there is a lack of capacity to produce semiconductor products. As a consequence, contract manufacturers of semiconductor products increase their prices for their services and favor more profitable products. This is how TrendForce analysts see the situation, who calculated that in the first quarter, the total revenue of the top ten contract manufacturers grew by 1% compared to the traditionally more successful fourth quarter of the previous year and reached a record level of $ 22.75 billion.
The industry as a whole was not prevented even by power outages at some enterprises, which took place at some enterprises and disrupted their work. Looking ahead, we note that the revenue of Samsung, whose enterprises suffered from the power outage, showed a 2% reduction in revenue.
TSMC remains the leader among contrasting manufacturers. Moreover, within a year it was able to increase its market share from 54% to 55%. The main engines of TSMC’s revenue growth were technological processes based on the use of 7 nm and 16/12 nm standards. Specifically, orders from AMD, MediaTek and Qualcomm helped drive 7nm revenues up 23% in just the quarter.
In second place is Samsung, which owns 17% of the market. This is followed by UNC with 7%. This company managed to increase its revenue by 5%. Fourth-ranked GlobalFoundries officially handed over its Singapore factory Fab3E to VIS in the first quarter. As a result, GlobalFoundries’ revenues decreased by 16%, and the company’s share in the global contract manufacturing market for semiconductor products decreased from 7% to 5%.
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