AI TRENDS | Top 10 Global Foundries’ Revenue Rose 3.7% in the First Quarter to $47.95 Billion, TrendForce Says

The world’s top 10 wafer foundries posted a 3.7% quarter-on-quarter increase in revenue in the first quarter to $47.95 billion, setting a new record, according to TrendForce. According to Jin10, TrendForce said shipments tied to AI high-performance computing (AI-HPC) and related peripheral orders remained strong, while earlier-than-usual production and shipments across TV and PC/notebook supply chains, along with higher inventory levels for peripheral ICs, led foundries to receive advance production requests and additional orders. TrendForce said the seasonal slowdown in smartphone production continued, but its impact was largely offset by earlier pull-forward demand from the supply chain, leaving overall operations stronger than typical for an off-season. Looking to the second quarter, TrendForce said the benefits from early stocking by TV and PC/notebook ODMs and brands were expected to extend for about another quarter. It added that smartphones were gradually entering a new-model inventory build cycle. TrendForce said that as capacity utilization recovered, foundries had begun signaling to customers their intention to raise wafer foundry prices in the second half of the year. It said this was expected to help some process-node pricing bottom out and rebound, further encouraging customers to stock up in advance. TrendForce also said demand growth for AI-related advanced process technologies and power products was stronger than expected, contributing to order spillover and capacity crowding effects across the industry. TrendForce estimated that revenue for the top 10 global wafer foundries in the second quarter would reach another peak, with quarter-on-quarter growth accelerating compared with the previous quarter.