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Chip giants are making more money than ever as the semiconductor shortage rages on

Mount Equity Group Tokyo, Japan > News > Tech > Chip giants are making more money than ever as the semiconductor shortage rages on

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2330-TWMemory chips are seen on a Samsung Electronics memory module in this arranged photograph in Seoul, South Korea, on Thursday, July 26, 2018.SeongJoon Cho | Bloomberg | Getty Images

The world’s 10 biggest chip manufacturing companies saw their revenues surge to a record high in the first quarter of 2021, according to market research firm TrendForce.

The combined quarterly total revenue of the chipmakers, known as foundries, rose to a record high of $22.75 billion in the first quarter, according to a TrendForce blog published Monday.

Chips are used in everything from cars and games consoles, to washing machines and toothbrushes. They form part of the life blood of the global economy and are vital to many of the world’s biggest industries. But they’re also in short supply —  and the shortage could last until 2023.

“Owing to soaring demands for various end devices, manufacturers have been ramping up their component procurement activities, and foundry capacities, as a result, have been in shortage since 2020, with various foundries raising their wafer prices and adjusting their product mixes to ensure profitability,” TrendForce analyst Joanne Chiao wrote.

Around 57% of the world’s chip foundry revenues in the last quarter were generated by one Taiwanese chipmaker: