Research indicates: Q1 global wafer foundry output value is expected to increase by nearly 30% year-on-year, and the impact of the epidemic will be reflected in Q2.

According to research firm TrendForce under its Topology Research Institute, analyzed that the 1 quarter's wafer foundry industry continued the order injection and inventory replenishment from the previous quarter, with the total output value estimated to decline from the previous quarter by 2% . However, looking at the full year, benefiting from a lower base period in the same period last year, it is expected to increase by nearly 3 percent. However, the COVID-19 pandemic has impacted the global market, and economic growth momentum has slowed. Demand variables exist, which may weaken future growth momentum.

In addition, Q1 the top three global wafer foundry revenue earners are still TSMC, Samsung, and GlobalFoundries, which is consistent with last year's Q4 ranking.

The report points out that although Q1 2020 is traditionally an off-season, most wafer foundry manufacturers' revenue forecasts have increased, reflecting various expectations for the recovery of the semiconductor industry in 2020, increased demand for key developments, and customer inventory replenishment; however, affected by the COVID-19 pandemic, the established production schedules of supply chain manufacturers have been disrupted, impacting the upstream semiconductor industry. Currently, the order status of most wafer foundry manufacturers in Q1 2020 is normal and temporarily does not affect their Q1 2020 operational performance. However, considering that the time for the pandemic to ease is uncertain, the negative effects caused by the pandemic's impact are very likely to be reflected in Q2 2020 revenue performance.

(This article was published in "Topology Research Institute")