Press Room
Global Foundry Industry Bottoms Out in 1H23, Recovery Pace Remains Uncertain in 2H23: MIC
September 13, 2023

Amid persistent sluggishness in global consumer demand, the semiconductor foundry industry has faced several challenges in 2023. In the first quarter of 2023, the industry continued the downturn from the fourth quarter of 2022. The slow clearance of end device product inventory continued to disrupt the sales of chip products in the upstream supply chain, according to reports by MIC (Market Intelligence & Consulting Institute).

Taiwan Semiconductor Industry Shipment Value by Sector, 2015-2023



Note: US$1=NT$31.5
Source: MIC, September 2023

"Consequently, customers were reluctant to place orders, leading to a slower-than-expected inventory clearance," said Eason Lee, industry analyst with MIC. "Even TSMC has suffered from the slowdown in the utilization rate, for instance, its capacity utilization rate for the 7nm process plunged by 50% in the first quarter this year," Lee added. "On top of that, the increasing price competition from Chinese DDIC foundry Nexchip and the slow inventory clearance of other chips such as PMICs and MCUs add to the uncertainty regarding wafer foundry industry growth in the second half of 2023."

Established in 1987, MIC is a division of III (Institute for Information Industry), a major government think tank, and one of the leading IT research institutes in Taiwan.

To know more about this topic, please visit: 2022 Recap and 2023 Development of the Worldwide Semiconductor Foundry IndustryTaiwanese Semiconductor Industry Landscape, 2023 and BeyondTaiwan Semiconductor Manufacturing Industry, 2Q 2023

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