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TSMC beats competition with 84 per cent market control

Posted: 30 Sep 2014 ?? ?Print Version ?Bookmark and Share

Keywords:foundry? TSMC? manufacturing? 28nm?

Taiwan Semiconductor Manufacturing Co. Ltd will dominate the pure-play foundry manufacturing this year with 84 per cent market control, which amounts to $10.3 billion in sales, according to IC Insights.

Defined as the market for nodes with 28nm and smaller geometries, pure-play foundry market is forecast to expand by 72 per cent in 2014, while the market for nodes above 28nm will grow by only 4 per cent.

Of the four leading pure-play foundries!TSMC, Globalfoundries, UMC and SMIC!only TSMC will have higher average revenue per wafer this year, compared with the 2010 results. With $1,328, the Taiwan-based foundry is expected to have the highest revenue per wafer, 27 per cent higher than Globalfoundries. UMC's per-wafer revenue is estimated to be $770, 42 per cent below TSMC's.

Pure-play foundry revenue

Typical pure-play foundry revenue per logic wafer in 2Q14. Source: IC Insights

The figure above illustrates a wide gap between the 0.5?/200mm revenue per wafer and the 28nm/300mm revenue per wafer!with $430 and $5,850 respectively, the difference is over 14 times. Even when comparing revenues per square inch, the discrepancy is apparent!$51.77 for the 28nm technology versus $8.56 for the 0.5? technology.

IC Insights believes that the entrance of GlobalFoundries and Samsung into the high-end foundry market over the past few years has put pressure on TSMC to keep its prices for leading-edge products competitive. Although there will probably be only five foundries able to offer high-volume leading-edge foundry production over the next five years!including TSMC, GlobalFoundries, UMC, Samsung and Intel!these companies are likely to be fierce competitors and pricing will likely be under pressure as a result.

- Peter Clarke
??EE Times Europe

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