While the demand for electronics associated with the shift to teleworking, learning and entertainment is eroding as the pandemic’s restrictions are lifted in many countries, the corresponding decline in semiconductor contract manufacturing, according to TrendForce, is more than offset by seasonal rise in the smartphone market.
In addition, OEMs for laptops, networking, automotive electronics and IoT devices continue to fuel up their inventory vigorously because their earlier capacity shortages in the contract manufacturing market prevented them from meeting their targets. Because of this, in the third quarter, demand continued to exceed supply.
Recently, manufacturers have been gradually commissioning new capacities and capitalizing on the continuing rise in average selling prices.
As a result, quarterly revenue of contract manufacturers in the third quarter of 2021 grew by 11.8% compared to the previous quarter and reached a record value of $ 27.28 billion. Note that revenue continues to grow for nine quarters.
TSMC remains the leader. Moreover, the share of this company for the quarter increased from 52.9% to 53.1%. The share of Samsung, which ranks second, decreased from 17.3% to 17.1%. Data from these and other companies in the top ten manufacturers, which account for 97% of all revenue, are shown in the table: