Taiwan's top-three IC foundries will see their combined revenues drop only 0.6% sequentially in the fourth quarter of 2016 indicating a particularly strong fourth quarter, according to Digitimes Research.

Combined revenues of Taiwan's top-3 foundries - Taiwan Semiconductor Manufacturing Company (TSMC), United Microelectronics (UMC) and Vanguard International Semiconductor (VIS) - are estimated to be US$9.56 billion in the fourth quarter of 2016, up 28.6% on year, said Digitimes Research.

Revenues generated from 16nm process technology will increase 21.4% sequentially to US$2.69 billion in the fourth quarter, which will account for 28.1% of the overall combined revenues of Taiwan's top-3 foundries during the quarter, Digitimes Research indicated. Robust chip demand for high-end smartphones will be driving the growth of revenues generated from 16nm process technology.

Meanwhile, revenues generated from 28nm process technology are expected to account for 23.6% of the combined revenues of Taiwan's top-3 foundries in the fourth quarter, compared with 23.1% in the prior quarter, Digitimes Research said. In the fourth quarter, 28nm will be replaced by 16nm as the mainstream manufacturing node used by Taiwan's top-3 foundries.

Taiwan's top-3 foundries saw their combined revenues reach US$9.62 billion in the third quarter, up 17.6% on quarter.

By: DocMemory
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