Foundry Business and Market Trend Report ｜ July 2023
August 31, 2023
Key Takeaways:
Global 40/45nm Capacity and Demand Updates:
- In 40/45-nanometer process, worldwide capacity is expected to increase by 10% to 15% in 2024 and 2025, respectively. At this node, automotive applications are currently undergoing robust development.
- Besides automotive applications, the ISP and networking sectors are experiencing steady growth. However, the share of mobile AP and TV SoC remains low due to the shift towards more advanced processes. Other specific applications are also transitioning to advanced process nodes, leading to some fluctuations in production volume.
DDIC Price Trend Status:
- We expect the price trend of DDIC (Display Driver IC) to continue to decrease into 2H23, mainly driven by weaker-than-expected demand recovery for the global smartphone market and potential wafer price cut for tier 2/3 foundries.
Global AP Shipment Updates:
- Based on our preliminary estimates, we expect global AP shipments to show a mild recovery by 3~6% YoY in Y2024 at 1,100~1,150mn units after a sharp demand correction and inventory digestion in Y2023.
- We expect smartphone AP procurement units to gradually improve from 18~21% decline in Y2023 by up 3~6% YoY in Y2024, especially driven by Huawei/Honor/Xiaomi, while the demand from Oppo/vivo may remain flattish in Y2024.
Figure: Global 40/45nm Wafer Demand Breakdown Forecast
The information we shared is only a short excerpt of our monthly report. If you have further interest in our research and findings, we would be happy to provide you with a more detailed and comprehensive report that includes additional insights and data points. Please contact us to access our full insights.
Authors
Lucy Chen
Lucy Chen, Vice President at Isaiah Research, has been working 25+ years in semiconductor industry. Focus on semiconductor engineering and supply chain research. Master in Application Chemistry, NCTU, Taiwan Currently as the Vice President at Isaiah Research and lead semiconductor research team to work on the supply chain analysis from IC design and IDM(Qualcomm, MediaTek, Intel, etc) to foundries(TSMC, Samsung, UMC, GlobalFoundries, SMIC) and OSATs(ASE,SPIL). Business development and customer management including raw materials and equipment suppliers, top tier foundries and smartphone brands. Used to work as the Engineering Director at Lam Research for 15+ years and Director of Technology & Marketing at SEZ Group. Focus on process engineering, product strategies planning, supply chain and customer management including foundries and memory.
