According to the latest foundry industry research from TrendForce, aside from the continued strong shipments for AI HPC and related peripheral orders, the first quarter saw supply chains for products like TVs and PCs/NBs ramping up production and shipments ahead of schedule while increasing inventory levels for peripheral ICs. Foundries have consequently received orders from customers for advanced production or additional volumes. Although the traditional slow season for smartphone production persisted, its impact was largely offset by the supply chain's early stockpiling activities. Overall operational performance remained robust despite the season, with the combined revenue of the world's top ten foundries reaching a new high of $47.95 billion, marking a sequential increase of 3.7%.
Looking ahead to the second quarter, the benefits of early stockpiling by TV, PC/NB ODMs, and brands are expected to extend for approximately another quarter. Additionally, as smartphone brands gradually enter the new model preparation cycle, foundries—with their improving capacity utilization rates—are beginning to signal to customers their intention to raise wafer prices in the second half of the year. This is anticipated to drive a bottoming out and rebound in prices for certain process nodes, further incentivizing customers to advance their procurement. Simultaneously, demand growth for AI-related advanced processes and Power products has exceeded expectations, leading to order spillover and capacity crowding effects within the industry. TrendForce forecasts that the combined revenue of the global top ten foundries will reach another peak in Q2, with the sequential growth rate accelerating significantly compared to the previous quarter.
Key Foundry Performance Highlights
Taiwan Semiconductor Manufacturing (TSM) saw its Q1 revenue grow 6.3% sequentially to nearly $35.86 billion, defying the seasonal slowdown, driven by sustained strong demand for AI Server GPU/xPU shipments and a surge in Server CPU orders fueled by Agentic AI and General Purpose Server trends. Its market share increased to 72% during the off-season.
Samsung Foundry (excluding System LSI), while also receiving some early stockpiling orders from TV and PC/NB supply chains, largely saw this offset by the smartphone seasonality effect. Its Q1 revenue fell 5.8% sequentially to $3.2 billion, with market share declining to 6.5%, maintaining its position as the second-ranked player.
SMIC (Semiconductor Manufacturing International Corporation) benefited from early stockpiling orders from TV, NB/PC ODM, and brand supply chains. Additionally, some 8-inch customers began implementing previously negotiated price increases set for the second half of 2025. Both total wafer shipments and ASP saw slight sequential increases, leading to a 0.6% revenue rise to $2.5 billion. Its market share held steady at 5.1%, keeping its third-place ranking.
The early stockpiling measures by TV and PC/NB supply chains also positively impacted United Microelectronics (UMC), which received additional orders from both 8-inch and 12-inch peripheral IC clients. Both capacity utilization and wafer shipments increased sequentially in Q1. However, ASP declined by approximately 5% due to a higher proportion of 8-inch wafer shipments. Revenue decreased 3.2% sequentially to $1.93 billion, with a 3.9% market share securing the fourth position.
GLOBALFOUNDRIES Inc. (GFS) derived less benefit from the consumer supply chain's early stockpiling due to its customer mix and faced the typical slow season for smartphone peripheral IC procurement. Both wafer shipments and ASP declined in Q1, leading to an approximately 11% sequential revenue drop to $1.63 billion. Its market share was also slightly affected, decreasing to 3.3%, but it maintained its fifth-place ranking.
Ranking changes were influenced by TV and NB supply chain pull-in factors, with Nexchip Semiconductor Corporation rising to eighth place in Q1, its highest historical ranking.
For HuaHong Group, its subsidiary HHGrace saw a slight increase in total wafer shipments, partially offset by a decline in ASP, resulting in a marginal 0.2% sequential revenue decrease to $660 million. After including HLMC's revenue, the group's Q1 revenue increased slightly by 1.2% to $1.23 billion, maintaining a 2.5% market share and a solid sixth-place position.
Tower Semiconductor was affected by seasonal factors in consumer electronics peripheral ICs, with Q1 revenue declining 6% sequentially to $410 million, holding a 0.8% market share in seventh place.
This quarter, the effects of early stockpiling by TV and PC/NB supply chains reshuffled the rankings for the eighth to tenth positions.
Nexchip Semiconductor Corporation saw its revenue increase 3.2% sequentially to $400 million in Q1, as its customer base highly overlaps with key peripheral ICs for TVs and PCs/NBs, making the benefits more pronounced than for peers. Its ranking improved from ninth place in the previous quarter to eighth.
VIS was driven by urgent orders for PC/NB and TV LDDIC early pull-in, along with steady smartphone and AI-related power management orders. Wafer shipments and capacity utilization improved sequentially in Q1, but increased shipments for some DDICs were offset by a decline in ASP. Revenue decreased 2.1% sequentially to nearly $400 million, with a 0.8% market share, dropping its ranking to ninth place.
PSMC benefited from the continued memory price increase effect in Q1, with its foundry (memory and logic) revenue growing 4.4% sequentially to nearly $390 million, securing a 0.8% market share and the tenth position.
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