SAN JOSE, Calif. -- Singapore's Chartered Semiconductor Manufacturing Pte. Ltd. and others gained share in the miserable foundry market in the first quarter of 2009, according to iSuppli Corp. But overall, business is expected to improve in the foundry arena, as there are whispers about possible allocations and price hike scenarios in the sector.
United Microelectronics Corp. (UMC), Semiconductor Manufacturing International Corp. (SMIC) and others lost share in the first quarter in the sagging foundry sector, according to iSuppli, a research firm. For 2009, the pure-play foundry market will underperform the overall semiconductor industry, with foundries suffering a revenue decline of 26.5 percent, according to iSuppli.
Still, the market is looking up. The pure-play foundry semiconductor manufacturing industry will see strong growth in the second quarter after three quarters of contraction, according to iSuppli. But the foundry market is projected to cool off in the third quarter, according to a separate report from FBR.
Global revenue for pure-play foundries is projected to hit $3.6 billion in the second quarter, up 59.3 percent from $2.2 billion in the first period, according to iSuppli. The increase follows a 1.8 percent sequential decrease in the third quarter of 2008, a 32.3 percent decline in the fourth quarter of 2008 and a 38.2 percent plunge in the first quarter of 2009, according to the firm.
Global pure-play foundry revenue in the first quarter of 2009 fell by 57.7 percent from $5.3 billion in the first quarter of 2008. ''The foundry market in the second quarter is benefitting from both a major reduction in semiconductor inventories throughout the electronics supply chain and innovative new designs requiring innovative technology,'' said Len Jelinek, director and principal analyst for iSuppli,'' in a statement.
