TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Co. (TSMC) captured 56.1% of the global foundry market to lead all players in the third quarter, according to market research firm TrendForce.

The Taiwanese chipmaker saw revenue increase by 11.1% from the previous quarter to US$20.16 billion (NT$619 billion). TrendForce attributed TSMC growth to Apple’s “strong stock-up demand” for chips used in the new iPhone 14 lineup.

The research firm said TSMC growth came mainly from its 7nm and below processes, which accounted for 54% of revenue in Q3. Following TSMC in terms of market share were Samsung (15.5%), UMC (6.9%), GlobalFoundries (5.8%), and SMIC (5.3%).

Meanwhile, fellow Taiwanese chipmaker UMC saw revenue increase 1.3% quarter-on-quarter to about US$2.48 billion in the third quarter, the report found. UMC's performance was helped by a strong US dollar and newly added 28nm production capacity.

Looking ahead to the fourth quarter, TrendForce said foundry orders for semiconductors used in consumer electronics will experience downward corrections, which will in turn affect wafer shipments and capacity utilization rates for foundries. TrendForce is forecasting that most of the global top 10 foundries will post either a reduced growth or a drop in revenue in Q4.

It noted that while TSMC will likely see quite a significant drop in 7/6nm orders, its revenue will be helped by 5/4nm demand. The research firm does not expect TSMC Q4 revenue to decline, but said it will most likely be comparatively flat compared to the third quarter.