TSMC, Samsung Likely To Feel Pinch Of Global Foundry Industry Slowdown In 2023: Report - Samsung Electronics Co (OTC:SSNLF), Taiwan Semiconductor (NYSE:TSM)

The global contract chipmaking revenue will likely fall by 4% in 2023 year-on-year on a pandemic recovery-driven demand correction for the advanced chips that contributed to the fortunes of Taiwan Semiconductor Manufacturing Company Ltd TSM and Samsung Electronics Co, Ltd SSNLF.
The foundry sales grew by an estimated 28.1% Y/Y in 2022.
Major design houses are already cutting the use of wafers this quarter with no signs of a significant rebound in orders, and foundries may see a more profound drop in demand next quarter, Bloomberg reports.
The global economy struggled with the rising central bank interest rates, China's attempt to rebound from its COVID lockdowns, and ongoing Russia's war in Ukraine.
Global tech giants also slashed spending as pandemic-era demand in e-commerce and remote work cooled down.
Related: TSMC Guides To Below-Consensus Q1 Amid Continued End Market Weakness, Inventory Corrections
TrendForce analyst Joanne Chiao said, "The recovery of individual foundries' capacity utilization rates will not occur as quickly as expected."
The foundry industry was worth $130 billion as of 2022, TrendForce estimated. TSMC led the sector, with the most prominent memory chipmaker, Samsung trailing in second position, the report adds.
Korea's exports of semiconductors are likely to fall 15% in 2023 Y/Y, the report cited the Korea International Trade Association, to the dismay of Samsung.
Also Read: Samsung Sees Q4 Profit Plunge 69% As Pandemic Correction And Macro Headwinds Weigh
Price Action: TSM shares traded lower by 0.89% at $88.67 in the premarket on the last check Thursday.
Photo Via Wikimedia Commons

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