Science Technology

In 2021, the giant who has made a lot of money from wafer foundry is expected to make another year!

COVID-19 has a huge impact on the manufacturing industry around the world, resulting in the worldwide shutdown of production in different periods of time, which has led to the delay and accumulation of orders for semiconductor manufacturing, which is gradually enlarged as the shutdown time increases.
However, the market demand for semiconductors has not disappeared. Once the production and supply are restored, the market operates, and the orders that have been delayed and accumulated need to be produced. The demand in the market for a period of time also piled up and rushed to the manufacturers, and there is also real-time demand.
As the market demand for 5G, electric vehicles, Internet of Things and other applications continues to grow, and the new capacity of wafer foundry at the supply side is limited, the capacity of wafer foundry is in short supply, and the price of foundry will also rise further.
According to the estimate of the World Semiconductor Trade Statistics Organization (WSTS), the global semiconductor industry will grow by 25.6% in 2021, and the total output value in 2022 is expected to exceed 600 billion US dollars, continuing to reach a record high, with an annual increase of 8.8%.
In the “double high” situation where the demand is high and the price is high, the chip foundry giants are making money! To the point where you can’t make money.
Taking TSMC as an example, it is expected to invest US $100 billion to expand production this year, next year and the next three years, which does not include the funds for setting up factories in Japan. It is expected that TSMC will further increase the amount of capital expenditure in the next three years.
TSMC has also expanded its overseas investment layout, and plans to expand the new 28nm production capacity of Chinese Mainland’s Nanjing Plant. It will gradually open in the second half of 2022, and reach the monthly output of 40000 pieces by the middle of 2023. For overseas production expansion, the 5nm wafer factory invested and established by TSMC in Arizona is expected to be mass produced in 2024; A special technology wafer factory is set up in Kumamoto Prefecture, Japan. It is expected to produce 22nm and 28nm processes in 2024.
Liandian is located in the P5 plant of Nanke Wafer 12A Plant, and it is estimated that the capacity of 10000 chips will be increased in the first quarter of next year; The P6 plant is expected to introduce mass production in 2023, with a full capacity of 27500 pieces and an investment of about NT $100 billion (about RMB 22.98 billion).
Let’s talk about the revenue and profit of the four giants in fiscal year 2021:
According to the 2021 financial report released by TSMC, the total revenue in 2021 was NT $1587.42 billion (about RMB 365769 billion), an increase of 18.5% year on year.
In terms of net profit, according to the total income of the four quarters, it was NT $596.59 billion (about RMB 137.465 billion), an increase of about 15.2% year on year in 2020.
2、 Samsung Electronics
In the field of advanced technology, only Samsung can barely compete with TSMC.
Samsung Electronics recently released a performance forecast. It is expected to achieve revenue of 76 trillion won (about 404.32 billion yuan) in Q4 of 2021, up 23.48% year-on-year and 2.73% month-on-month, which is expected to set a new record for quarterly revenue. Samsung attributed it to the strong demand for memory chips and the rising profit of the wafer generation industry.
3、 Connected power
In 2021, the annual revenue of Liandian reached NT $213.011 billion (about RMB 49.081 billion), an increase of 20.47%.
4、 Lattice core
Grid Core has not released the fourth quarter financial report. Take the third quarter as an example, its revenue in the third quarter increased to $1.7 billion from $1.09 billion in the same period last year, up 56% year on year; The net profit of the quarter was US $5 million, or US $0.01 per share; Compared with the same period last year, the net loss was $293 million, or $0.58 per share.
For Grid Core, it is to turn losses into profits. Although there is no sharp profit, it is nearly 300 million dollars from the same period in 2020.
In 2021, the chip shortage will continue in 2022. The chip delivery time will be delayed by about 10 to 20 weeks, and the situation will not be relieved until the beginning of 2023. In this case, the total output value of semiconductors will still exceed US $600 billion, and major manufacturers have expanded production.
At the beginning of 2022, the industry said that the wafer price would increase by about 10%, which is an estimate of the market demand, indicating that the wafer foundry will be saturated in 2022. It is expected that the wafer foundry giants will continue to make profits in 2022, and will continue to break records in terms of revenue and profits.
After some of the newly expanded capacity goes online in 2023, the wafer foundry market is likely to be balanced and the price is stable.