Top 5 foundries account for 90% market share
TSMC down 1%, Samsung Foundry up 1.1%

The world's top 10 foundries achieved 4Q 2021 revenue growth of 8.3% from the previous quarter, driven by strong demand relative to production capacity and rising average selling prices.

TrendForce announced the 4Q 2021 revenue for the world's top 10 foundries on the 14th. According to the announcement, 4Q 2021 revenue reached $29.55 billion, a 8.3% increase from the previous quarter.

TrendForce analyzed that while supply shortages for some TV and notebook components eased, supply for PMICs and MCUs remained tight relative to demand, and increased high-value wafer production contributed to revenue growth.

Samsung Foundry, SMIC, and Nexchip achieved growth rates exceeding the 4Q average of 8.3%, while TSMC and UMC recorded growth rates below the average.

TSMC, the leading foundry, recorded 4Q 2021 revenue of $15.75 billion, a 5.8% increase from the previous quarter. However, its 4Q market share dropped to 52.1%, down 1% from the previous quarter. TSMC benefited from new iPhone product demand with increased 5nm process revenue, but 7nm and 6nm process revenues declined due to weakness in the Chinese smartphone market, resulting in slightly lower market share than the previous quarter.

Samsung Foundry, ranked second, recorded 4Q 2021 revenue of $5.54 billion, a 15.3% increase from the previous quarter, driven by gradual expansion of new 5nm and 4nm advanced processes and mass production of flagship products. Market share increased to 18.3%, up 1.1% from the previous quarter. Despite Samsung Foundry's strong performance, overall profitability declined due to slower advanced process expansion. Based on this, TrendForce cited improving advanced process capacity and yield as Samsung's top priority for 1Q 2022.

UMC, ranked third, recorded 4Q 2021 revenue of $2.12 billion, a 5.8% increase from the previous quarter, though market share declined from 7.2% to 7.0%. Analysis indicates that production line expansion, product mix optimization, and new long-term agreements (LTA) drove GlobalFoundries' average selling price increases.

GlobalFoundries, ranked fourth, recorded 4Q 2021 revenue of $1.85 billion, a 8.6% increase from the previous quarter, maintaining 6.1% market share. Analysis indicates that production line expansion, product mix optimization, and new long-term agreements (LTA) drove GlobalFoundries' average selling price increases.

China's SMIC maintained its fifth-place ranking despite U.S. semiconductor sanctions. SMIC achieved 4Q 2021 revenue of $1.58 billion driven by increased demand for HV, MCU, ultra-low-power logic, and specialty memory products and rising average selling prices.

Nexchip, which rose to 10th place surpassing DB HiTek, recorded 4Q 2021 revenue of $352 million, a 44.2% increase from the previous quarter. Furthermore, Nexchip announced plans to develop advanced processes including 55nm, 40nm, and 28nm nodes and multiple product lines including TDDI, CIS, and MCU to supplement its single product line and limited customer base.

Meanwhile, 1Q 2022 foundry growth is expected to be lower than 4Q 2021 due to Chinese New Year holidays and scheduled maintenance and repair work at foundries.