TrendForce reports an interesting shift in the electronics landscape: dwindling inventories for TV components, along with a surging mobile repair market that's been driving TDDI demand, have sparked a smattering of urgent orders in the Q2 supply chain. These last-minute orders have served as pivotal lifelines, propping up Q2 capacity utilization and revenue for semiconductor foundries. However, the adrenaline rush from these stop-gap orders may be a short-lived phenomenon and is unlikely to be carried over into the third quarter.

On the other hand, demand for staple consumer products like smartphones, PCs, and notebooks remains sluggish, perpetuating a slump in the use of expensive, cutting-edge manufacturing processes. At the same time, traditionally stable sectors—automotive, industrial control, and servers—are undergoing inventory correction. The confluence of these trends has resulted in a sustained contraction for the world's top ten semiconductor foundries. Their global revenue declined by approximately 1.1% for the quarter, amounting to a staggering US$26.2 billion.

Here's something that has been sorely missing from tech news: good news. It seems that TSMC's development on the 4 nm manufacturing process is running better than anticipated by the company itself, which has prompted for a full quarter advancement for the test production on TSMC's next miniaturization level. Previously scheduled for test production starting on 4Q 2021, TSMC has announced that it has now moved test production to 3Q 2021.

This could mean an equivalent - or perhaps even better - reduction in volume production and time-to-market, but it's anyone's guess at this point. As notably difficult and onerous as semiconductor development is, problems are more likely to appear than not. 4 nm is expected to bring respectable improvements to the PPA equation for semiconductors over 5 nm - however, TSMC still hasn't disclosed expected gains.