AI, SMIC breakthrough, slowing overall growth
🟦 Semiconductor Foundry Market @ Q1 2024
Foundry sales for the first quarter of 2024 declined 4.3% quarter-over-quarter to $29.17 billion, with overall growth slowing. China SMIC moved up to third place, overtaking GlobalFoundries and UMC. TSMC remains in first place, but is down 4.1% quarter-on-quarter to $18.85 billion. Samsung came in second with a 7.2% decline to $3.36 billion. While demand for AI servers is strong, the impact of economic conditions and geopolitical risks remains a concern.
🟦AI server strength, SMIC breakthrough
The consumer market has entered a traditional off-season, and the future of the automotive and industrial equipment markets is uncertain. However, the demand for AI servers remains strong. The geopolitical situation in China has also helped SMIC make a breakthrough.
The main Foundry status is as follows.
- TSMC: Maintains the top spot, supported by Apple’s inventory cycle and robust demand for AI servers.
- Samsung: Impacted by the off-season smartphone market and increased competition in the Chinese market.
- SMIC: Growth was driven by the expansion of domestic demand in China and an aggressive local production strategy.
- GlobalFoundries and UMC: Impacted by the slowdown in the automotive and industrial markets and price competition.
🟦Summary
In the first quarter of 2024, the overall growth rate of the foundry market slowed due to the off-season in the consumer market and uncertainty in the automotive and industrial equipment markets. On the other hand, there were also signs of growth, such as the steady growth of demand for AI servers and the breakthrough of SMIC in China.
China’s SMIC jumped to third place in the world, while GlobalFoundries in the United States slipped to fifth. This move could be a new flashpoint for US-China trade frictions.
