IC foundries overview (1st part)
A detailed overview on the IC foundry industry with the main players. In this part: TSMC, Samsung Foundry and Globalfoundries.
TSMC (Taiwan Semiconductor Manufacturing Corporation)
TSMC is the biggest pure play IC foundry and It holds a dominant position in the market due to technological leadership, introducing advanced process nodes ahead of its competitors, serving a broad range of clients including fabless semiconductor companies, system-on-chip designers, and technology giants. Moreover, TSMC is well known for its manufacturing excellence, quality and reliability.
While there are other notable players in the foundry market, TSMC's continuous advancements in process nodes, technological innovation, and strong client relationships have solidified its position as a prominent leader in the semiconductor foundry landscape. here below a brief overview of its notable achievements:
Early Nodes: TSMC began with larger nodes like 0.5um and progressed through 0.35um, 0.25um, and smaller, gradually miniaturizing transistor sizes.
10nm and below: In recent years, TSMC made notable improvements with 10nm, 7nm, and 5nm nodes. The 7nm node was a significant breakthrough, offering improved power efficiency and performance, utilized in various high-end chips for smartphones, GPUs, and CPUs.
5nm and Beyond: The 5nm node further enhanced chip performance and power efficiency. It allowed for the production of advanced processors in smartphones and other devices, packing more transistors into a smaller area.
3nm and Future Nodes: TSMC has been developing the 3nm node, aiming for even higher transistor density and performance improvements. This node is expected to power the next generation of high-performance computing devices.
TSMC's achievements in process node advancements have fueled technological innovation across industries, enabling the development of more powerful, energy-efficient, and compact electronic devices. The company's continuous research and development efforts contribute significantly to the semiconductor industry's evolution.
Here below the chart shows all the process nodes covered by TSMC.
TSMC Fabs list
TSMC (Taiwan Semiconductor Manufacturing Company) operates several fabs covering the main World regions. Here's an introduction to TSMC's major manufacturing plants:
1. Taiwan Facilities:
- Hsinchu Campus: Houses multiple fabs (such as Fabs 2, 3, and 5) located in the Hsinchu Science Park, focusing on the production of various semiconductor nodes.
- Tainan Campus: Includes Fab 6, one of TSMC's largest and oldest facilities, playing a significant role in chip manufacturing.
- In Hsinchu and Central Taiwan Park, TSMC is planning to develop other fabs dedicated to the product of 2nm ICs.
Global Expansion:
3. China: Nanjing (Fab 16): This facility extends TSMC's manufacturing presence in China, supporting the company's global production network.
4. U.S. new manufacturing Site: TSMC announced plans to construct a major semiconductor manufacturing facility in Arizona, aimed at bolstering its production capacity and strengthening its presence in the U.S. market.
5. Europe: TSMC announced plans to build a new fab in Dresden (Germany) for covering the increased demand received by the car OEMs, with mature nodes. The fab is estimated to be operative in 2027.
6. Japan: TSMC announced plans to construct two new fabs in joint venture with Sony Semiconductor Services in Kumamoto, providing a variety of mature and advanced nodes. The first fab will produce mature nodes from 28nm to 12nm from 2024, and the second will produce 6nm nodes from 2027.
These manufacturing plants utilize cutting-edge technologies to produce semiconductor wafers used in various applications, from consumer electronics to high-performance computing and automotive systems. TSMC continuously invests in expanding and upgrading these facilities to meet the growing demand for advanced semiconductor technology.
Here below the complete information about TSMC’s fabs list
2023 Q3 financials snapshot
Taiwan Semiconductor Manufacturing Company (TSMC) generates revenue primarily through the manufacturing of semiconductors. The main applications covered by TSMC's revenue include:
1. Computing and Data Centers: Semiconductors produced by TSMC are used in CPUs, GPUs, and other components essential for computers, servers, and data centers.
2. Consumer Electronics: This encompasses various devices such as smartphones, tablets, wearables, and other consumer gadgets that heavily rely on semiconductors.
3. Industrial and IoT: Semiconductors produced by TSMC are also used in various industrial applications, as well as in the growing field of IoT devices.
4. Automotive Industry: TSMC's chips are increasingly being used in automotive applications, including advanced driver-assistance systems (ADAS), infotainment systems, and other vehicle components.
5. Networking and Communication: TSMC provides chips for networking equipment, telecommunications infrastructure, and various communication technologies like 5G.
TSMC revenue by node could be divided into three main categories:
1. Advanced Nodes (7nm, 5nm, 3nm): TSMC has seen substantial revenue growth from its cutting-edge process nodes like 7nm and 5nm. These advanced nodes cater to high-performance computing (HPC), AI, 5G, and other sophisticated applications. The sum of these nodes represents 59% of the TSMC revenue in 2023 Q3.
2. Mature Nodes (16nm, 20nm, etc.): While revenue from mature nodes has decreased over time due to the market's shift towards more advanced nodes, these nodes still contribute to TSMC's revenue, especially in certain applications where cost-effectiveness and established technology are prioritized over cutting-edge performance. Between 16nm and 90nm the sum of these nodes represents more than 30% of the TSMC revenue in 2023 Q3.
3. Niche Nodes (Specialized Nodes): TSMC also serves niche markets with specialized nodes tailored for specific applications such as IoT, automotive, and certain industrial sectors. Revenue from these nodes might not be as significant as the advanced nodes but still contributes to the overall revenue. In the 2023 Q3 the revenue coming from these nodes represents only 8%.
TSMC's revenue by region is primarily influenced by where its customers are located and where the demand for semiconductor manufacturing services comes from and could be resumed in three biggest regions area, such as:
1. North America: This region typically represents a significant portion of TSMC's revenue due to the presence of many tech giants, semiconductor companies, and major customers in the United States such as: Apple, Qualcomm, AMD, Broadcom, NVIDIA, Marvell, among others. The total revenue in 2023 Q3 represents 69%.
2. Asia-Pacific: TSMC's home base in Taiwan and its proximity to other major technology hubs in Asia, such as China, Japan, and South Korea, contribute to a substantial portion of its revenue. In Asia the major customers are: Mediatek, Sony, UniSoc, Renesas, among others. The total revenue in 2023 Q3 represents 26%.
3. Europe and Middle East: Although smaller compared to North America and Asia-Pacific, Europe also contributes to TSMC's revenue, with several technology companies and manufacturers relying on TSMC's semiconductor solutions. The main European customers for TSMC are: Bosch, Infineon, NXP, ST among others. The total revenue in 2023 Q3 represents 5%.
Samsung Foundry
Samsung Foundry is the semiconductor foundry division of Samsung Electronics, dedicated to manufacturing chips for various applications. Leveraging Samsung's advanced technology and manufacturing capabilities.
Key points about Samsung Foundry include:
1. Advanced Process Nodes: Samsung Foundry offers advanced process nodes for semiconductor manufacturing, including 5nm, 7nm, and beyond. These nodes cover specifically to high-performance computing, artificial intelligence, 5G, automotive, and other cutting-edge applications.
2. Mature Process Nodes: Samsung Foundry also offers mature nodes from 14nm, to 0.18um which are still relevant for certain applications where cost-effectiveness and established technology are prioritized over bleeding-edge performance. These nodes find application in various consumer electronics, automotive, and IoT devices.
3. Comprehensive Solutions: The foundry provides a comprehensive suite of services, including design support, silicon IP, packaging technologies, and testing services, to assist customers in developing and producing their semiconductor solutions.
Here below the complete chart regarding Samsung Foundry’s process node
Samsung Foundry Fabs list
1. Giheung Campus (South Korea): Samsung's Giheung Campus is one of its main semiconductor manufacturing complexes. It houses multiple fabs that produce chips using various mature process nodes, up to 8nm.
2. Hwaseong Campus & Pyeongtaek (South Korea): A major semiconductor manufacturing hub for Samsung, is the Hwaseong Campus dedicated to producing advanced semiconductor chips and is known for its technological advancements and cutting-edge manufacturing capabilities. From 2021, Pyeongtaek hub started the production of advanced nodes.
4. Plans for Expansion: Samsung has been considering expanding its foundry operations into other regions, such as the United States. It is already planned for the construction of a new fab in Taylor, Texas, that will be dedicated to the production of the advanced nodes.
Samsung Foundry’s fabs are instrumental in the production of a wide array of semiconductor products, supporting various industries and applications globally. The company continuously invests in these facilities to enhance manufacturing capabilities, develop new technologies, and maintain competitiveness in the semiconductor market.
Globalfoundries
GlobalFoundries, is the third major IC foundry company by revenue, offers a range of process nodes to various market segments and applications. Compared to TSMC and Samsung Foundry, GlobalFoundries is adopting a different strategy approach in the process node roadmap.
GlobalFoundries has strategically focused on mature nodes as a part of its overall semiconductor manufacturing strategy. Here are key aspects of their mature node strategy:
1. Maintaining Cost-Effectiveness: GlobalFoundries recognizes the ongoing demand for mature process nodes in certain market segments where cost-effectiveness and established technology play significant roles. These nodes offer a balance between performance, power efficiency and cost.
2. Legacy and Specialty Products: The company continues to support customers requiring legacy products manufactured on mature nodes. These nodes serve as a foundation for producing chips used in a range of devices, from consumer electronics to automotive and industrial applications.
3. Longevity and Stability: GlobalFoundries provides a stable and long-term supply of products manufactured on mature nodes, ensuring continuity for customers who rely on these technologies for their products.
4. Customization and Optimization: While focusing on mature nodes, GlobalFoundries also offers customization and optimization services, allowing customers to tailor designs and optimize performance within the constraints of these established process nodes.
5. Transition and Future Developments: Despite the emphasis on mature nodes, GlobalFoundries has been investing in advanced technologies and exploring new avenues, such as specialized process nodes and specific technologies like FD-SOI, to expand its portfolio and cover the evolving market needs.
GlobalFoundries strategy involves balancing its focus on mature nodes to serve existing market demands while also innovating and exploring new technologies to meet future requirements. This approach ensures that the company maintains its competitiveness and flexibility in addressing diverse customer needs across different segments of the semiconductor market.
GlobalFoundries process node portfolio
GlobalFoundries process node coverage could be divided into main four categories:
1. 12nm and 14nm Nodes: These nodes are mature but still relevant for applications where cost-effectiveness and established technology are prioritized over advanced performance. They are commonly used in a variety of applications, including consumer electronics, automotive, and IoT devices.
2. 22nm FD-SOI (Fully Depleted Silicon on Insulator): GlobalFoundries specializes in FD-SOI technology, offering the 22FDX process node. FD-SOI is known for its power efficiency and suitability for IoT, automotive, and other low-power applications.
3. 28nm Node: This node provides a balance between performance and power efficiency, finding applications in various consumer electronics, automotive electronics, networking, and industrial segments.
4. Specialized Nodes: GlobalFoundries also provides specialized process nodes tailored for specific applications and markets, offering customization and optimization for customers' unique requirements.
GlobalFoundries positions itself as a provider of a diverse set of process nodes, focusing not only on advanced nodes but also on mature and specialized nodes to cater to a broad range of customer needs. Their emphasis on specific technologies like FD-SOI aims to address markets where power efficiency and cost-effectiveness are critical factors.
GlobalFoundries Fabs list
GlobalFoundries operates on four main semiconductor fabrication facilities:
1. Fab 1 (Dresden, Germany): GlobalFoundries' Fab 1 in Dresden, Germany, is one of its largest and most advanced facilities. This fab produces chips using various process nodes, including both mature nodes and specialized technologies like the 22FDX FD-SOI (Fully Depleted Silicon on Insulator) process.
2. Fab 7 (Singapore): Located in Woodlands, Singapore, Fab 7 is another key facility for GlobalFoundries. It primarily focuses on the production of chips using 300mm wafers, serving different market segments. In September 2023, the new fab expansion opened with a supplementary 23,000 square-meters that will allow it to reach additional 12-inch 450,000 wafer output yearly.
3. Fab 8 (Malta, New York, USA) and Fab 9 (Essex Junction, Vermont): Fab 8 in Malta, New York, is a significant manufacturing site for GlobalFoundries, catering to various nodes and technologies. In April 2023, the Company completed the purchase of supplementary 800 acres nearby the current Malta fab for expanding the plant to align the customer demand.
GlobalFoundries 2023 Q3 snapshot
GlobalFoundries' revenue is derived from providing semiconductor manufacturing solutions to a wide range of industries and applications, the main revenue percentage could be reconducted to the four following applications:
1. Smart Mobile Devices (SMD); This category encompasses various devices like smartphones, tablets, gaming consoles, and other consumer gadgets that heavily rely on semiconductor chips. In 2023 Q3 SMD accounts for 42% of the total revenue.
2. Industrial and IoT: GlobalFoundries chips are also utilized in various industrial applications, as well as in the growing field of IoT devices, enabling connectivity and functionality in smart devices. In 2023 Q3 Industrial and IoT has a 20% of the total revenue share.
3. Automotive: GlobalFoundries provides chips for automotive applications, including advanced driver-assistance systems (ADAS), infotainment systems, engine control units, and other critical components in modern vehicles. With a 17% of the total revenue share in the 2023 Q3, automotive applications represent a relevant business for GlobalFoundries.
4. Communications infrastructure and datacenter: The company's semiconductor solutions are used in telecommunications equipment, networking devices, routers, switches, and other communication technologies. These applications represent the 8% of the total revenue in 2023 Q3.
All the sources have been collected from: online media and company websites.