TSMC forecast to remain largest contract chipmaker in China in 2017

2017/10/09 16:44:48 fontsize-small fontsize-default fontsize-big
TSMC forecast to remain largest contract chipmaker in China in 2017

Taipei, Oct. 9 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) is expected to retain the title as the biggest contract chipmaker in the China market amid fast growing demand, according to market information advisory IC Insights.

In a report released on Oct. 5 on its website, IC Insights said that TSMC, already the world's largest pure wafer foundry operator with a global market share of about 50 percent, is likely to maintain its lead among its competitors in China this year with an increased market share of 46 percent from 44 percent in each of the past two years.

TSMC's 2017 revenue in the China market is forecast at US$3.17 billion, 10 percent of its total and an increase from US$2.66 billion in 2016 and US$2.12 billion in 2015, according to IC Insights.

It said TSMC and other contract chipmakers operating in China have benefited from the growing presence of IC designers there, which has resulted in increased demand for contract chip production.

Meanwhile, TSMC's smaller competitor United Microelectronics Corp. (UMC, 聯電) is expected to remain the third largest supplier in China in 2017, posting a projected US$635 million in sales there to take a 9 percent market share, up from 8 percent in 2016 but unchanged from 2015, IC insights said.

UMC's 2017 sales in the China market is forecast at about 13 percent of the company's total, the advisory firm said.

Among the other top five contract chipmakers in China, Shanghai-based Semiconductor Manufacturing International Corporation (SMIC, 中芯) is expected to rank as the second largest supplier there in 2017, unchanged from 2016, according to the report.

It forecast SMIC's sales at US$1.46 billion this year, down from US$1.49 billion in 2016 and amounting to a 21 percent market share compared with 25 percent in 2016.

California-headquartered GlobalFoundries Inc. is expected to post US$475 million in sales in China, taking a 7 percent market share and remaining the fourth biggest supplier in that market, IC Insights said.

In fifth place will be Shanghai-based Hua Hong Semiconductor Ltd. (華宏), with US$455 million in sales in the China market and a 7 percent market share there in 2017, IC Insights forecast. Sales of China's pure wafer operations are expected to show a 16 percent annual increase this year to about US$7 billion, IC Insights said.

It said that among the top five suppliers in China, TSMC, UMC and GlobalFoundries are building new plants there to strengthen their footholds.

(By Jackson Chang and Frances Huang)
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