Q3 2024: Wafer Foundry Report

The third quarter of 2024 painted a mixed picture for the foundry industry, with some vendors celebrating profits while others grappled with losses. This highlights the diverse landscape of this crucial sector of the semiconductor world.

Samsung:

• Overall Q3 2024 Sales: 79.1 trillion won ($57.4 billion) – Up 7% QoQ, up 17% YoY.
• Overall Q3 2024 Operating Profit: 9.18 trillion won ($6.7 billion) – Down 1.3% QoQ, up 6.8% YoY.
• Semiconductor Business: Mixed results; strong server memory demand, weak mobile demand due to inventory adjustments and increased legacy product supply in China.
• Foundry Business: Reported losses of 1 trillion won in Q3 due to one-off costs and struggles with 3nm yield. Temporary production line shutdowns implemented to cut costs.

UMC:

• Q3 2024 Sales: NT$60.49 billion (US$1.9 billion) – Up 6.5% QoQ, up 6% YoY.
• Q3 2024 Net Income: NT$14.47 billion (US$457 million) – Up 4.8% QoQ, down 9.5% YoY.
• Process Node Breakdown: 22nm/28nm processes represented 35% of sales; 40nm technology was 13% of sales.
• Q3 Fab Capacity Utilization: 71%.
• Q4 2024 Guidance: Flat wafer shipments and ASPs; high-60% range capacity utilization; US$3.0 billion capital spending.

GlobalFoundries:

• Q3 2024 Sales: $1.739 billion – Up 7% QoQ, down 6% YoY.
• Q3 2024 Net Income: $178 million – Up 15% QoQ, down 29% YoY.
• End Market Sales Breakdown: Smart mobile devices: $868 million (up 14% QoQ, up 11% YoY); Automotive: $256 million (down 5% QoQ, down 16% YoY).
• Q4 2024 Outlook: Sales: $1.800 billion to $1.850 billion; Net income: $161 million to $236 million.
• BIS Fine: $500,000 penalty for unauthorized chip shipments to SJ Semiconductor (SMIC affiliate).

Intel:

• Q3 2024 Sales: $13.3 billion – Down 6% YoY.
• Q3 2024 Net Loss: $16.6 billion (-$3.89 per share) – Compared to a $300 million profit in Q3 2023.
• Foundry Business Sales: $4.4 billion.
• Foundry Business Loss: $5.8 billion.
• Chip Packaging Operation: Profitable.
• Secure Enclave Program Funding: Awarded $3 billion in direct funding.
• CHIPS Act Funding: Awaiting disbursement of up to $8.5 billion in proposed funding.