Core Viewpoint - The global wafer foundry industry is expected to see a 26% year-on-year revenue growth and a 9% quarter-on-quarter growth in Q4 2024, driven primarily by strong AI demand and the ongoing recovery of the Chinese market [1][3]. Summary by Sections Industry Performance - The advanced process capacity utilization remains high, driven by AI and flagship smartphone demand, particularly for TSMC's N3 and N5 processes [1][3]. - The overall utilization rate for global (excluding China) mature process foundries hovers between 65%-70%, with 12-inch processes recovering faster than 8-inch processes due to weaker demand in automotive and industrial sectors [1][3]. Demand Recovery - Non-AI demand is gradually recovering, particularly in consumer electronics and PC semiconductor sectors, supported by pre-production demand related to U.S. tariffs and demand driven by Chinese subsidies [1][3]. - Advanced packaging demand remains strong and stable, with TSMC actively expanding its CoWoS-L and CoWoS-R capacities, alleviating previous market concerns regarding capacity and order adjustments [1][3]. Company-Specific Insights - TSMC's revenue share reached a record 67% in Q4 2024, up from 64% in the previous quarter, primarily due to high capacity utilization in advanced processes [4]. - Samsung Foundry experienced a slight quarter-on-quarter revenue decline in Q4 2024, attributed to lower-than-expected demand for Android smartphones, leading to a decrease in its market share from 12% to 11% [5]. - SMIC's performance in Q4 2024 met expectations, with revenue growth driven by the recovery in consumer electronics and domestic localization efforts, although overall capacity utilization decreased from 90.4% to 85.5% [6]. - UMC's performance in Q4 2024 was stable, supported by occasional urgent orders in consumer electronics, but faced pricing pressure and a negative impact from a January earthquake [7]. - GlobalFoundries reported stable performance in Q4 2024, with strong wafer shipments offsetting seasonal weakness in the smartphone sector, driven by automotive demand and growth in communication infrastructure [8]. Analyst Commentary - The strong performance of the wafer foundry industry in Q4 2024 is largely attributed to the surge in AI and flagship smartphone demand, maintaining high capacity utilization in advanced processes [9].

根据 Counterpoint Research 的 《晶圆代工季度追踪报告》 数据，全球晶圆代工行业在 2024 年 Q4 收 入同比增长 26% ，环比增长 9% ，主要受强劲的 AI 需求以及中国市场持续复苏的推动。先进制程 的产能利用率依然维持在高位，主要受 AI 及旗舰智能手机需求驱动，尤其是TSMC的 N3 和 N5 制 程。与此同时，全球（不含中国）的成熟制程晶圆代工厂仍面临较低的产能利用率困境，本季度整 体利用率徘徊在 65%-70% 之间。其中，12 英寸制程的复苏势头强于 8 英寸制程，后者受汽车和工 业领域需求低迷的影响更大。不过，非 AI 需求正逐步回暖，尤其是在消费电子和 PC 半导体领域， 这得益于与美国关税相关的预先生产需求以及中国补贴驱动的需求，这为更广泛的市场稳定带来了 一些乐观因素。 随着 AI 和高性能计算（HPC）持续推动先进制程需求增长，先进封装在支撑行业增长方面发挥了关 键作用。TSMC 积极扩展 CoWoS-L 和 CoWoS-R 产能，进一步强化这一趋势，并缓解了市场此前对 产能及订单调整的担忧。 数据来源：《2024 年 Q4 全球晶圆代工行业收入追踪报告》， ...

Core Viewpoint - The global wafer foundry industry experienced a polarized development in Q4 2024, with advanced processes benefiting from the growth of emerging applications like AI servers and new flagship smartphone APs, leading to a nearly 10% quarter-on-quarter revenue increase for the top ten foundries, reaching a record high of $38.48 billion [1][2]. Group 1: Industry Overview - The advanced process segment saw growth due to increased demand from AI-related chips and new smartphone platforms, offsetting the decline in mature process demand [1]. - The top ten wafer foundries collectively achieved a revenue of $38.48 billion in Q4 2024, marking a 9.9% increase from Q3 2024 [2]. Group 2: Company Performance - TSMC's revenue grew to $26.85 billion in Q4 2024, a 14.1% increase from Q3 2024, maintaining a market share of 67.1% [2][4]. - Samsung's revenue slightly decreased by 1.4% to $3.26 billion, with a market share of 8.1% due to challenges in offsetting losses from major customer transitions [5]. - SMIC's revenue increased by 1.7% to $2.21 billion, with a market share of 5.5%, benefiting from new 12-inch capacity and optimized product mix [6]. - UMC's revenue was $1.87 billion, a slight decrease of 0.3%, maintaining a market share of 4.7% due to better-than-expected capacity utilization [7]. - GlobalFoundries reported a revenue increase of 5.2% to $1.83 billion, with a market share of 4.6% [8]. - HuaHong Group's revenue grew by 6.1% to $1.04 billion, driven by increased capacity utilization and demand from the home appliance sector [9]. - Tower's revenue increased by 4.5% to $387 million, maintaining a market share of 1.0% [10]. - VIS experienced a revenue decline of 2.3% to $357 million, with a market share of 0.9% [11]. - Nexchip's revenue grew by 3.7% to $344 million, rising to the ninth position in market share [12]. - PSMC's revenue decreased, resulting in a drop to the tenth position, although it remained slightly above Nexchip for the full year [13].

Financial Data and Key Metrics Changes - Revenue for Q1 2024 was $1,715 million, up 4.3% sequentially [5] - Gross margin decreased to 13.7%, down 2.7 percentage points sequentially [5] - Profit attributable to the company was RMB 72 million [5] - Total assets at the end of Q1 were RMB 48.2 billion, with total cash on hand of RMB 15.4 billion [6] - Total liabilities were RMB 17.3 billion, with total debt at RMB 10.3 billion [6] - EBITDA was RMB 887 million, with an EBITDA margin of 50.7% [5] Business Line Data and Key Metrics Changes - 8-inch equivalent wafer shipments increased by 7% sequentially to 17.95 thousand pieces [12] - Wafer revenue accounted for 93% of total revenue, while other revenue accounted for 7% [13] - Wafer revenue by application: smartphones (31%), computers and tablets (18%), consumer electronics (31%), connectivity and IoT (13%), industrial and automotive (7%) [14] Market Data and Key Metrics Changes - Revenue from China accounted for 82%, while revenue from America and Eurasia accounted for 15% and 3%, respectively [13] - Utilization rate increased by 4 percentage points sequentially to 80.8% [12] Company Strategy and Development Direction - The company is focusing on capacity construction and R&D to enhance core competitiveness and corporate value [8] - Plans not to pay dividends for 2023 to align with long-term development needs [9] - The company is accelerating the development of technology platforms for mainstream applications, including automotive and IoT [15] - The company aims to maintain its leading position in the market through strategic partnerships and technology leadership [19] Management's Comments on Operating Environment and Future Outlook - The company observed improved IC inventory levels and increased willingness from global customers to build inventory [11] - Revenue and gross margin both exceeded guidance in Q1 [12] - For Q2 2024, revenue is expected to grow by 5% to 7%, with gross margin projected to be between 9% and 11% [7][16] - The company is cautiously optimistic about the second half of the year, with a revenue growth target exceeding the industry average [18][20] Other Important Information - The company is in a continuous high investment phase to expand 12-inch high-quality capacity [20] - The company has achieved laboratory accreditation for its Automotive Reliability Testing Center, supporting its automotive process platform development [15] Q&A Session Summary Question: Inventory levels and customer demand - Management noted that global customers are more willing to build inventory due to market uncertainties [11] Question: Revenue guidance and market conditions - Management provided guidance for Q2, expecting revenue growth and a cautious outlook for the second half of the year [18][20] Question: Dividend policy and long-term strategy - Management explained the decision not to pay dividends for 2023 aligns with long-term development needs [9]

Financial Data and Key Metrics Changes - In Q4 2023, revenue was $1.678 billion, up 3.6% sequentially, while gross margin decreased to 16.4%, down 3.4 percentage points sequentially [5][12] - For the full year 2023, revenue was CNY 6.322 billion, down 13% year-over-year, with a gross margin of 19.3% [6][13] - EBITDA for Q4 was RMB 1.011 billion, with an EBITDA margin of 60.2%, while full year EBITDA was RMB 4.064 billion, with an EBITDA margin of 64.3% [6][8] Business Line Data and Key Metrics Changes - Revenue from CMOS image sensors (CIS) and image signal processors (ISP) increased by over 60% sequentially, while revenue from display driver ICs (DDIC) and touch display driver ICs (TDDI) increased by nearly 30% sequentially [12][13] - The company reported strong competitiveness in the 40nm and 55nm markets [13] Market Data and Key Metrics Changes - By region, revenue distribution was 80% from China, 16% from America, and 4% from Eurasia [14] - Wafer revenue by size was 26% from 8-inch and 74% from 12-inch wafers, while revenue by application was distributed as follows: Smartphones 27%, Computers and Tablets 27%, Consumer Electronics 25%, Connectivity and IoT 12%, and Industrial and Automotive 10% [14] Company Strategy and Development Direction - The company plans to continue progress on 12-inch fabs and capacity building projects, with capital expenditure expected to remain flat compared to the previous year [15][16] - The company aims for revenue growth not less than the industry average, targeting mid-single-digit percentage growth year-over-year for 2024 [16] Management's Comments on Operating Environment and Future Outlook - The company experienced a downturn in the semiconductor industry in 2023, with high inventories and macroeconomic challenges impacting demand [10][15] - Management noted that while there are signs of recovery in certain areas, the overall market demand is not strong enough for a comprehensive rebound [15] - The company emphasized its resilience due to its local manufacturing capabilities and market advantages in China [18] Other Important Information - Capital expenditure for 2023 was RMB 7.47 billion, and the company generated RMB 3.358 billion in cash from operating activities [7][8] - The company reported a total asset value of RMB 47.8 billion, with total liabilities of RMB 16.9 billion and total equity of RMB 30.8 billion [7] Q&A Session Summary Question: What are the revenue contributions from different product lines? - Revenue contributions were noted as follows: 30% from BCD analog power, 25% from high voltage drivers, 20% from microcontrollers (MCUs), 10% from memory, and 10% from CMOS imagers [22] Question: What is the outlook for the semiconductor market? - The company indicated that the semiconductor market is facing challenges from macroeconomic factors, geopolitical tensions, and inventory issues, which may hinder a strong recovery [15][17]