Early details of MediaTek's next generation mobile chipset have emerged this week, courtesy of renowned leaker Digital Chat Station via their blog on Weibo. The successor to MediaTek's current flagship Dimensity 9200 mobile chipset will likely be called "Dimensity 9300" - a very imaginative bump up in numbering - with smartphone brand Vivo involved as a collaborator. The tipster thinks that the fabless semiconductor company has contracted with TSMC for fabrication of the Dimensity 9300 chipset - and the foundry's N4P process has been selected by MediaTek, which could provide a bump in generational performance when compared to the older 4 nm and 5 nm standards used for past Dimensity SoC ranges. It should be noted that the current generation Dimensity 9200 chipset is presently manufactured via TSMC's N4P process.

MediaTek is seeking to turnaround its fortunes in the area of flagship mobile chipsets - industry watchdogs have cited a limited uptake of the Taiwanese company's Dimensity 9200 SoC as a motivating factor in the creation of a very powerful successor. Digital Chat Station suggests that the upcoming 9300 model will pack enough of a hardware punch to rival Qualcomm's forthcoming Snapdragon 8 Gen 3 SoC - both chipsets are touted to release within the same time period of late 2023. According to previous speculation, Qualcomm has also contracted with TSMC's factory to pump out the Snapdragon 8 Gen 3 via the N4P (4 nm) process.

According to The Information, Microsoft has been working on creating custom processors for processing AI with a project codenamed Athena. Based on TSMC's 5 nm process, these chips are designed to accelerate AI workloads and scale to hundreds or even thousands of chips. With the boom of Large Language Models (LLMs) that require billions of parameters, training them requires a rapid increase of computational power to a point where companies purchase hundreds of thousands of GPUs from the likes of NVIDIA. However, creating custom processors is a familiar feat for a company like Microsoft. Hyperscalers like AWS, Google, and Meta are already invested in the creation of processors for AI training, and Microsoft is just joining as well.

While we don't have much information about these processors, we know that Microsoft started the project in 2019, and today these processors are in the hands of select employees of Microsoft and OpenAI that work with AI projects and need computational horsepower. Interestingly, some projections assume that if Microsoft could match NVIDIA's GPU performance, the cost would only be a third of NVIDIA's offerings. However, it is challenging to predict that until more information is provided. Microsoft plans to make these chips more widely available as early as next year; however, there is no specific information on when and how, but Azure cloud customers would be the most logical place to start.

TrendForce reports that the US Department of Commerce recently released details regarding its CHIPS and Science Act, which stipulates that beneficiaries of the act will be restricted in their investment activities—for more advanced and mature processes—in China, North Korea, Iran, and Russia for the next ten years. The scope of restrictions in this updated legislation will be far more extensive than the previous export ban, further reducing the willingness of multinational semiconductor companies to invest in China for the next decade.

CHIPS Act will mainly impact TSMC; and as the decoupling of the supply chain continues, VIS and PSMC capture orders rerouted from Chinese foundries
In recent years, the US has banned semiconductor exports and passed the CHIPS Act, all to ensure supply chains decoupling from China. Initially, bans on exports were primarily focused on non-planar transistor architecture (16/14 nm and more advanced processes). However, Japan and the Netherlands have also announced that they intend to join the sanctions, which means key DUV immersion systems, used for producing both sub-16 nm and 40/28 nm mature processes, are likely to be included within the scope of the ban as well. These developments, in conjunction with the CHIPS Act, mean that the expansion of both Chinese foundries and multinational foundries in China will be suppressed to varying degrees—regardless of whether they are advanced or mature processes.

An online tipster, posting on the Chinese blog site Weibo, has let slip that Qualcomm's upcoming Snapdragon 8 Gen 3 mobile chipset is touted to pack some hefty graphical capabilities. The suggested Adreno "750" smartphone and tablet GPU is touted to offer a 50% increase over the present generation Adreno 740 - as featured on the recently released and cutting-edge Snapdragon 8 Gen 2 chipset. The current generation top-of-the-range Snapdragon is no slouch when it comes to graphics benchmarks, where it outperforms Apple's prime contender - the Bionic A16 SoC.

The Snapdragon 8 Gen 3 SoC is expected to launch in the last quarter of 2023, but details of the flagship devices that it will power are non-existent at the time of writing. The tipster suggests that Qualcomm has decided to remain on TSMC's 4 nm process for its next generation mobile chipset - perhaps an all too safe decision when you consider that Apple has upped the stakes with the approach of its Bionic A17 SoC. It has been reported that the Cupertino, California-based company has chosen to fabricate via TSMC's 3 nm process, although the Taiwanese foundry is said to be struggling with its N3 production line. The engineers at Qualcomm's San Diego headquarters are alleged to be experimenting with increased clock speeds running on the next gen Adreno GPU - as high as 1.0 GHz - in order to eke out as much performance as possible, in anticipation of besting the Bionic A17 in graphics benchmarks. The tipster theorizes that Qualcomm will still have a hard time matching Apple in terms of pure CPU throughput, so the consolation prize will lie with a superior GPU getting rigged onto the Snapdragon 8 Gen 3.

Reports from supply chain partners suggests that Apple cut off production of their current generation M2 SoC lineup in the months of January and February following significantly decreased demand for Mac computers containing the chips. The details trace back to partners in Outsourced Semiconductor Package Test, or OSAT, which is many different companies in the supply chain that contribute to assembly and testing of the final packaged SoC. OSAT partners claim they received zero M2 wafers from TSMC during both months, and that shipments have only resumed at half of the previous capacity in the month of March. The breadth of this shutdown touched many different suppliers, from the packaging facilities in Korea, to the solder ball suppliers in Taiwan, the TIM suppliers in Germany, and die underfill material suppliers from Japan. Many of these parts can be specific to the type of chip being produced, as M2 features a different packaging method to Apple's normal A-Series mobile SoCs; a lack of M2 silicon led to a full shutdown of this supply chain. An industry insider for Amcona states, "It is impossible to do other packaging work on the M2 line, the so-called 'Apple line' installed in Amcona chip packs."

In their Q1 2023 earnings conference Apple reported a sharp revenue drop in Mac sales from $10.85B down to $7.74B. "The PC market is facing a very challenging situation," stated Tim Cook, Apple's CEO, "I think we have an advantage with silicon but it will be very difficult in the short term." Apple began production of M2 well over a year ago when demand for Apple silicon equipped MacBooks was still sky high, and likely had large reserves of finished chips and machines stockpiled for the launch of M2 Pro and M2 Max in January. With demand dipping up to the launch of the new MacBook models it would certainly justify slowing down production, but outright halting it for multiple months suggests demand far undershot Apple's expectation.

Intel has awarded TSMC with some big contracts for future manufacturing of next generation GPUs, according to Taiwan's Commercial Times. As previously covered on TPU, the second generation Battlemage graphics processing units will get fabricated via a 4 nm process. According to insider sources at both partnering companies, Intel is eyeing a release date in the second half of 2024 for this Xe2-based architecture. The same sources pointed to the third generation Celestial graphics processing units being ready in time for a second half of 2026 launch window. Arc Celestial, which is based on the Xe3 architecture, is set for manufacture in the coming years courtesy of TSMC's N3X (3 nm) process node.

One of the sources claim that Intel is quietly confident about its future prospects in the GPU sector, despite mixed critical and commercial reactions to the first generation line-up of Arc Alchemist discrete graphics cards. The company is said to be anticipating great demand for more potent versions of its graphics products in the future, and internal restructuring efforts have not dulled the will of a core team of engineers. The restructuring process resulted in the original AXG graphics division being divided into two sub-groups - CCG and DCAI. The pioneer of the entire endeavor, Raja Koduri, departed Intel midway through last month, to pursue new opportunities with an AI-focused startup.

Silicon manufacturers in South Korea and Taiwan have questioned the requirements outlined in the United States Chips and Science Act - South Korean President Yoon Suk Yeol spoke on Thursday March 30, and said that there was a growing concern within companies Samsung Electronics Corporation and SK Hynix Inc. with regard to criteria for new U.S. semiconductor subsidies. Excess profit sharing is one area of contention, as the U.S. government will expect dividends to be paid under special conditions. The companies are also reluctant to meet the requirements of submitting detailed information about fab capacity and yield estimates. Leaders are pointing to the potential sensitive nature of exposing too much confidential corporate strategy to bodies in the USA, and sources within Samsung and SK Hynix are worried that budgetary planning information will be revealed in minute detail.

The CHIPS Act grants a $52 billion pool of research and manufacturing funds, and subsidies would be sourced from it. SK Hynix's parent group is considering an application in order to gain access to funding via the CHIPS Act, the SK Group has formed plans to invest $15 billion of its own money into the U.S. chip manufacturing sector - a North American location for an advanced chip packaging plant is being decided upon. Samsung has invested a substantial $25 billion into its Texas operation, so is eligible to receive U.S. government subsidies as well.

In no mood to cede its market-share growth to Intel, AMD has reportedly decided to accelerate the development of its next-generation "Zen 5" microarchitecture for debut within 2023. In its mid-2022 presentations, AMD had publicly given "Zen 5" a 2024 release date. This is part of a reading-in-between the lines for a recent GIGABYTE press release announcing server platforms powered by relatively low-cost Ryzen desktop processors. The specific sentence from that release reads "The next generation of AMD Ryzen desktop processors that will come out later this year will also be supported on this AM5 platform, so customers who purchase these servers today have the opportunity to upgrade to the Ryzen 7000 series successor."

While the GIGABYTE press release speaks of a next-generation Ryzen desktop processor, it stands to reason that it is referencing an early release of "Zen 5," and since AMD shares the CPU complex dies (CCDs) between its Ryzen client and EPYC server processors, the company is looking at a two-pronged upgrade to its processor lineup, with its next-generation EPYC "Turin" processor competing with Xeon Scalable "Emerald Rapids," and Ryzen "Granite Ridge" desktop processors taking on Intel's Core "Raptor Lake Refresh" and "Meteor Lake-S" desktop processors. It is rumored that "Zen 5" is being designed for the TSMC 3 nm node, and could see an increase in CPU core count per CCD, up from the present 8. TSMC 3 nm node goes into commercial mass-production in the first half of 2023 as the TSMC N3 node, with a refined N3E node slated for the second half of the year.

Amid the US sanctions, Chinese technology giant Huawei has reportedly developed tools to create processors with 14 nm and above lithography. According to Chinese media Yicai, Huawei and its semiconductor partners have teamed up to create replacement tools in place of US chip toolmakers like Cadence, Synopsys, and Mentor/Siemens. These three companies control all of the world's Electronic Design Automation (EDA) tools used for every step of chip design, from architecture to placement and routing to the final physical layout. Many steps need to be taken before making a tapeout of a physical chip, and Huawei's newly developed EDA tools will help the Chinese industry with US sanctions which crippled Huawei for a long time.

Having no access to US-made chipmaking tools, Huawei has invested substantial time into making these EDA tools. However, with competing EDA makers supporting lithography way below 14 nm, Huawei's job still needs to be completed. Chinese semiconductor factories are currently capable of 7 nm chip production, and Huawei itself is working on making a sub-7 nm EUV scanner to aid manufacturing goals and compete with the latest from TSMC and other. If Huawei can create EUV scanners that can achieve transistor sizes smaller than 7 nm, we expect to see their EDA tools keep pace as well. It is only a matter of time before they announce adaptation for smaller nodes.

Semiconductor manufacturers worldwide are forecast to increase 300 mm fab capacity to an all-time high of 9.6 million wafers per month (wpm) in 2026, SEMI announced today in its 300 mm Fab Outlook to 2026 report. After strong growth in 2021 and 2022, the 300 mm capacity expansion is expected to slow this year due to soft demand for memory and logic devices.

"While the pace of the global 300 mm fab capacity expansion is moderating, the industry remains squarely focused on growing capacity to meet robust secular demand for semiconductors," said Ajit Manocha, SEMI President and CEO. "The foundry, memory and power sectors will be major drivers of the new record capacity increase expected in 2026."

Intel's next-generation Arc "Battlemage" GPU is expected to numerically-double its shader counts, according to a report by RedGamingTech. The largest GPU from the Arc "Battlemage" series, the "BMG-G10," aims to power SKUs that compete in the performance segment. The chip is expected to be built on a TSMC 4 nm-class EUV node, similar to NVIDIA's GeForce "Ada" GPUs, and have a die-size similar to that of the "AD103" silicon powering the GeForce RTX 4080.

Among the juiciest bits from this report are that the top "Battlemage" chip will see its Xe Core count doubled to 64, up from 32 on the top "Alchemist" part. This would see its execution unit (EU) count doubled to 1,024, and unified shader counts at 8,192. Intel is expected to give the chip clock speeds in excess of 3.00 GHz. The Xe Cores themselves could see several updates, including IPC uplifts, and support for new math formats. The memory sub-system is expected to see an overhaul, with a large 48 MB on-die L2 cache. While the memory bus is unchanged at 256-bit wide, the memory speed could see a significant increase up from the 16-17.5 Gbps on the Arc A770. As for when customers can actually expect products, the RedGamingTech report puts launch of the Arc "Battlemage" series at no sooner than Q2-2024. The company is expected to launch refreshed "Alchemist+" GPUs in 2023.

Apple's engineering team is rumored to be adjusting performance targets set for its next generation mobile SoC - the A17 Bionic - due to issues at the TSMC foundry. The cutting edge 3 nm process is proving difficult to handle, according to industry tipsters on Twitter. The leaks point to the A17 Bionic's overall performance goals being lowered by 20%, mainly due to the TSMC N3B node not meeting production targets. The factory is apparently lowering its yield and execution targets due to ongoing problems with FinFET limitations.

The leakers have recently revealed more up-to-date A17 Bionic's Geekbench 6 scores, with single thread performance at 3019, and multi-thread at 7860. Various publications have been hyping the mobile SoC's single thread performance as matching that of desktop CPUs from Intel and AMD, more specifically 13th-gen Core i7 and 'high-end' Ryzen models. Naturally the A17 Bionic cannot compete with these CPUs in terms of multi-thread performance.

NVIDIA today announced a breakthrough that brings accelerated computing to the field of computational lithography, enabling semiconductor leaders like ASML, TSMC and Synopsys to accelerate the design and manufacturing of next-generation chips, just as current production processes are nearing the limits of what physics makes possible.

The new NVIDIA cuLitho software library for computational lithography is being integrated by TSMC, the world's leading foundry, as well as electronic design automation leader Synopsys into their software, manufacturing processes and systems for the latest-generation NVIDIA Hopper architecture GPUs. Equipment maker ASML is working closely with NVIDIA on GPUs and cuLitho, and is planning to integrate support for GPUs into all of its computational lithography software products.

In a Samsung Electronics business report released on March 12, it was revealed that the giant electronics manufacturer will begin mass production of new chips through a 4 nm 2.3-generation process. The newly established manufacturing process is set to start by the end of H1 2023, which means that mid-June would be the expected commencement date. Samsung Semiconductor has managed to produce a satisfactory yield of wafers with the new generation chipsets.

Samsung Electronics has experienced significant problems with the production of previous generation 4 nm chips, and industry insiders have been surprised by the sudden announcement of the third generation version, given rumors pointing to the Hwaseong factory struggling to reach yields at the 60% mark. Qualcomm famously dropped Samsung in favor of TSMC as a source of 4 nm chipsets in 2022, due to disappointing yield figures.

According to TrendForce's latest survey of the global foundry market, electronics brands began adjusting their inventories in 2Q22, but foundries were unable to rapidly adapt to this development because they reside in the more upper portion of the supply chain. Moreover, revising procurement quantities of long-term foundry contracts takes time as well. Hence, only some tier-2 and -3 foundries were able to immediately respond to the changes in their clients' demand. Also, among them, 8-inch wafer foundries made a more pronounced reduction in their capacity utilization rates. As for the remaining foundries, the downward corrections that they made to their capacity utilization rates did not become noticeable until 4Q22. Hence, in 4Q22, the quarterly total revenue of the global top 10 foundries registered a QoQ decline for the first time after 13 consecutive quarters of positive growth. The quarterly total revenue of the top 10 foundries came to US$33,530 million, reflecting a drop of 4.7% from 3Q22. Moving into 1Q23, TrendForce projects that the quarterly total revenue of the top 10 will show an even steeper drop on account of seasonality and the uncertain macroeconomic situation.

Based on multiple reports out of Taiwan, TSMC is seeing increased utilisation of its 3 nm node and its production line is now at close to 50 percent utilisation. The main customer here is without a doubt Apple and TSMC is churning out some 50-55,000 wafers a month on its 3 nm node. TSMC is also getting ready to start production on its N3E node later this year, which will see some customers move to the node.

However, it's not all good news, as TSMC is seeing a decline in utilisation on its 5/4 and 7/6 nm nodes as demand has dropped significantly here, with different news outlets reporting different figures. Some are suggesting the 7/6 nm nodes might have dropped as low as to 50 percent utilisation, others mention 70 percent. The 5/4 nm nodes aren't anywhere nearly as badly affected and remain at around 80 percent utilisation. The good news for TSMC is that this is expected to be a temporary slump in demand and most of its leading edge nodes should be back at somewhere around a 90 percent utilisation rate by the second half of the year. However, this depends on what the demand for its partners' products will look like going forward, as many of TSMC's customers are seeing lower demand for their products in turn.

Business Korea got the scoop on Samsung hiring an ex TSMC executive by the name of Lin Jun-Cheng, who was with TSMC for almost 19 years. His role at Samsung will be as VP of Samsung's advanced packaging business, something he should be more than familiar with, as during his time at TSMC, he was part of no less than 450 patents involving chip packaging. Lin has also worked for Micron and more recently for a company called Skytech, that specialises in advanced IC packaging equipment.

Samsung has relied on third parties when it comes to more advanced chip packaging and has been behind Intel and TSMC in this area. The Business Korea article mentions that Samsung has been spending a lot of resources over the past year to build its own advanced packaging business, including hiring industry experts. Samsung has hired ex Apple, Intel and Qualcomm staff to join or head various teams related to its foundry division, not only for packaging, but also experts in various lithography processes, such as EUV. Samsung is clearly taking its foundry business seriously, even though they have had their fair share of issues with various customers over the past few years.

The rumour mill has kicked into high gear this week about TSMC planning a second fab in Japan. The original source is the Nikkan Kogyo newspaper (via Reuters), based in Tokyo, although it's unclear where the actual fab would be located, if it's indeed even happening. According to the paper, the new fab would be focusing on 5 and 10 nanometer chips, but production isn't expected to start until sometime in the second half of this decade. This suggests that these would be mainstream nodes by then, which points to yet another fab for either the vehicle industry or something similar.

The fab is said to cost more than a trillion yen, or over US$7.4 billion to build. TSMC's CEO C.C. Wei was asked about the potential fab during TSMC's latest earnings call, but simply said that the company had nothing further to add. TSMC is of course busy building a fab in Japan on Kyushu island, but as it'll have a node capacity for 12 to 16 nm parts, it makes sense that TSMC would already be planning for an extension of said fab that can produce on more advanced nodes as its customers will be moving to more advanced nodes over time.

AMD and Arm have been gaining up on Intel in the server CPU market in the past few years, and the margins of the share that AMD had won over were especially large in 2022 as datacenter operators and server brands began finding that solutions from the number-2 maker growing superior to those of the long-time leader, according to Frank Kung, DIGITIMES Research analyst focusing primarily on the server industry, who anticipates that AMD's share will well stand above 20% in 2023, while Arm will get 8%.

Prices are one of the three major drivers that resulted in datacenter operators and server brands switching to AMD. Comparing server CPUs from AMD and Intel with similar numbers of cores, clockspeed, and hardware specifications, the price tags of most of the former's products are at least 30% cheaper than the latter's, and the differences could go as high as over 40%, Kung said.

Intel has reportedly deferred its orders for 3 nm wafers with TSMC, sources in PC makers tell Taiwan-based industry observer DigiTimes. Built on the TSMC N3 node, the wafers were supposed to power the Graphics tiles (containing the iGPU), of the upcoming "Arrow Lake" processors, which were originally on course for a 2024 release. The DigiTimes report detailing this development says that Intel's 3 nm wafer orders have been deferred to Q4-2024, which would realistically mean a 2025 launch for whatever product was designed to use 3 nm tiles. Advance orders for next-gen wafers by high-volume clients such as Intel, are usually placed several quarters in advance, so the foundry could suitably scale up its capacity.

MediaTek today announced the Dimensity 7200, its inaugural chipset in the new Dimensity 7000 series. The Dimensity 7200 boasts cutting-edge AI imaging features, powerful gaming optimizations, and impressive 5G speeds, all with deeply engrained power savings for extended battery life.

The Dimensity 7200 delivers the same TSMC 4 nm second-generation process found in the Dimensity 9200, and is ideal for ultra-slim designs in a variety of form factors. The octa-core CPU integrates two Arm Cortex-A715 cores, featuring operating speeds of up to 2.8 GHz, with six Cortex-A510 cores, so users can effortlessly multitask and take advantage of peak performance in every app. To further optimize power and performance, MediaTek's built-in AI Processing Unit (APU) maximizes the efficiency of AI tasks and AI-fusion processing.

Intel's upcoming Meteor Lake processor family is supposedly looking good with the new performance/efficiency targets. According to the @OneRaichu Twitter account, we have a potential performance estimate for the upcoming SKUs. As the latest information notes, Intel's 14th-generation Meteor Lake will feature around a 50% increase in efficiency compared to the 13th-generation Raptor Lake designs. This means that the processor can use half the power at the same performance target at Raptor Lake, increasing efficiency. Of course, the design also offers some performance improvements besides efficiency that are significant and are yet to be shown. The new Redwood Cove P-cores will be combined with the new Crestmont E-cores for maximum performance inside U/P/H configurations with 15-45 Watt power envelopes.

For integrated graphics, the source notes that Meteor Lake offers twice the performance of iGPU found on Raptor Lake designs. Supposedly, Meteor Lake will feature 128 EUs running 2.0+GHz compared to 96 EUs found inside Raptor Lake. The iGPU architecture will switch from Intel Iris to Xe-LPG 'Xe-MTL' family on the 14th gen models, confirming a giant leap in performance that iGPU is supposed to experience. Using the tile-based design, Intel combines the Intel 4 process for the CPU tile and the TSMC 5 nm process for the GPU tile. Intel handles final packaging for additional tuning, and you can see the separation below.

Intel Foundry Services, the semiconductor foundry business of Intel, has onboarded an undisclosed fabless customer, the company disclosed in its Q4-2022 Financial Results presentation. This signals that the company wants to serve the semiconductor manufacturing industry beyond its own products, and scale up to demands, just like TSMC, UMC, Samsung Foundry, or other such semiconductor foundries do. The customer is looking to build chips on the Intel 3 foundry-node, which is rumored to offer performance/Watt and transistor-density figures comparable to TSMC 4N (4 nm EUV). Intel will extensively use Tower Semiconductor's silicon fabrication IP in the deal. Throughout its manufacturing lifecycle (from risk production to mass-production and completion), the deal is expected by Intel to generate over $4 billion in revenue for the company.Image Courtesy: VideoCardz

Intel's server processor lineup led by the 4th Gen Xeon Scalable "Sapphire Rapids" processors face stiff competition from AMD 4th Gen EPYC "Genoa" processors that offer significantly higher multi-threaded performance per Watt on account of a higher CPU core-count. The gap is only set to widen, as AMD prepares to launch the "Bergamo" processor for cloud data-centers, with core-counts of up to 128-core/256-thread per socket. A technologically-embattled Intel is preparing quick counters as many as three new server microarchitecture launches over the next 23 months, according to Intel, in its Q4-2022 Financial Results presentation.

The 4th Gen Xeon Scalable "Sapphire Rapids," with a core-count of up to 60-core/120-thread, and various application-specific accelerators, witnessed a quiet launch earlier this month, and is shipping to Intel customers. The company says that it will be joined by the Xeon Scalable "Emerald Rapids" architecture in the second half of 2023; followed by "Granite Rapids" and "Sierra Forest" in 2024. Built on the same LGA4677 package as "Sapphire Rapids," the new "Emerald Rapids" MCM packs up to 64 "Raptor Cove" CPU cores, which support higher clock-speeds, higher memory speeds, and introduce the new Intel Trust Domain Extensions (TDX) instruction-set. The processor retains the 8-channel DDR5 memory interface, but with higher native memory speeds. The chip's main serial interface is a PCI-Express Gen 5 root-complex with 80 lanes. The processor will be built on the last foundry-level refinement of the Intel 7 node (10 nm Enhanced SuperFin); many of these refinements were introduced with the company's 13th Gen Core "Raptor Lake" client processors.

TrendForce's recent analysis of the foundry market reveals that demand continues to slide for all types of mature and advanced nodes. The major IC design houses have cut wafer input for 1Q23 and will likely scale back further for 2Q23. Currently, foundries are expected to maintain a lower-than-ideal level of capacity utilization rate in the first two quarters of this year. Some nodes could experience a steeper demand drop in 2Q23 as there are still no signs of a significant rebound in wafer orders. Looking ahead to the second half of this year, orders will likely pick up for some components that underwent an inventory correction at an earlier time. However, the state of the global economy will remain the largest variable that affect demand, and the recovery of individual foundries' capacity utilization rates will not occur as quickly as expected. Taking these factors into account, TrendForce currently forecasts that global foundry revenue will drop by around 4% YoY for 2023. The projected decline for 2023 is more severe when compared with the one that was recorded for 2019.