Q4 global wafer foundry output value increased by 6% quarter-on-quarter, TSMC holds half of the market share of the king!

Looking at the performance of the major operators in the fourth quarter, TSMC's 16/12nm and 7nm node capacity remained full. Among them, 7 Nano part of the apple iPhone 11 series sales better than expected, AMD maintained the volume of tablets, as well as MediaTek's first 5G SoC and other demand, the proportion of revenue continued to increase, mature process benefited from IoT chip shipments increased, estimated that TSMC's overall fourth-quarter revenue increased by 8.6%.

As for Samsung, demand for private label high-end 4G mobile apMs (Application Processor app processors) has slowed due to high expectations for 5G phones by 2020, although Qualcomm's 5G SoC at Samsung Will ship at the end of the fourth quarter. It is expected to fill the decline in the original mobile AP. In addition, the chip and high resolution CIS of the 5G Netcom device performed well, with revenue estimated to be flat or slightly higher in the fourth quarter compared with the third quarter, while the annual growth rate benefited from the lower base period in the same period in 2018, resulting in a high growth rate of 19.3%.

Grofond's RF IC is expected to turn positive in the fourth quarter with increased demand and the expansion of FD SOI products in the field of communications and automotive, filling the gap in demand for advanced processes. UMC's increase in 5G wireless devices and embedded memory market, coupled with the demand for PMIC in RF IC, OLED-driven IC and computing chip market, is expected to increase revenue by 15.1% in the fourth quarter. SMIC benefited from CIS and optical fingerprint ingresss chip growth, China's related customers continued to grow, while PMIC in communications applications also had stable demand, capacity utilization near full load, estimated fourth quarter revenue growth of 6.8%.

Tower Jazz is actively boosting RF SOI capacity utilization to expand market share in response to increased demand for RF chips and silicon optical wafers driven by 5G development, although fourth-quarter revenue is expected to decline 6 percent year-on-year due to the need for data center customers to de-capitalize inventory and the decline in demand for discrete devices compared to the same period in 2018. Hua Hong,its fourth-quarter revenue, which is largely funded by China's embedded memory and power semiconductors, also actively expanded RF product development, but declined 2.8 percent year-on-year as overall capacity utilization was less than in the same period in 2018. World Advanced (VIS) in PMIC, small panels drive part of the demand growth of IC, but large panel-driven IC demand declined, customer inventory situation is above average, the fourth quarter outlook is conservative.

Tutosi Industrial Research Institute pointed out that, driven by the festival promotion effect, the industry stock increased, the fourth quarter wafer foundry market revenue performance was better than expected. However, U.S.-China trade has not been resolved, the terminal market demand is still unstable factors, for this industry to look at follow-up market changes, the first half of next year's stock situation still needs to be based on inventory level as a basis for adjustment.