August 23, 2024 /SemiMedia/ -- According to Counterpoint Research's latest report, global foundry industry revenue grew approximately 9% quarter-on-quarter in Q2 2024, with a 23% year-on-year increase. This growth was primarily driven by strong demand for artificial intelligence (AI), particularly in the context of tight CoWoS supply, with potential for future capacity expansion focused on CoWoS-L.

While AI demand remained robust, recovery in non-AI sectors was slower. The 2024 Q3 smartphone peak season is expected to underperform, with automotive and industrial demand recovery also delayed.

Notably, the recovery in China's foundry market outpaced that of other regions. Chinese foundry companies such as SMIC and Hua Hong reported strong quarterly results, with overall utilization rates recovering to over 80%, largely due to local fabless clients entering inventory adjustments earlier.

TSMC slightly exceeded expectations in Q2 2024, driven by strong growth in AI accelerator demand, and subsequently raised its annual revenue forecast to around 20%. TSMC also plans to double its CoWoS capacity by 2025 to meet growing AI demand.

Samsung Foundry saw a quarter-on-quarter revenue increase, maintaining the second-largest market share, driven by smartphone inventory replenishment. The company continues to focus on attracting more mobile and AI/HPC customers, with expected annual revenue growth outpacing the industry average.

SMIC provided stronger-than-expected Q3 guidance, benefiting from ongoing demand recovery in China. UMC and GlobalFoundries also reported stable quarterly performance, with UMC leveraging favorable exchange rates and specialized technologies, while GlobalFoundries saw stable demand in automotive and communication markets.

Counterpoint analyst Adam Chang summarized that the global foundry industry demonstrated resilience in Q2 2024, with AI demand and smartphone inventory replenishment being the main growth drivers, though overall demand recovery remained uneven.