TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Co. (TSMC) accounted for a little over 60% of the foundry market in the first quarter, according to market research firm TrendForce on Monday (June 12).

TSMC was ranked first among contract chipmakers, controlling 60.1% of the market in the first quarter, up from 58.5% the previous quarter, according to TrendForce. The company generated US$16.74 billion (NT$513 billion) in Q1, representing a quarter-on-quarter drop of 16.2%.

TrendForce cited weaker demand for laptops and smartphones, which led to a decline in utilization rates and revenue for TSMC’s 7/6 nm and 5/4 nm processes. The research firm predicted that TSMC’s second quarter numbers could be a bit better due to “rush orders,” but because of “persistently low” capacity utilization rates, revenue is expected to continue dropping, however, at a slower pace compared to the first quarter.

Meanwhile, other Taiwanese contract chipmakers in the top ten foundries based on revenue were UMC, PSMC, and VIS, which were ranked fourth, eighth, and ninth, respectively.

Overall, TrendForce said the top 10 foundries saw a decline of around US$27.3 billion in the first quarter, representing an 18.6% quarter-on-quarter drop. It attributed the revenue decline to continued “weak end-market demand,” in addition to it being the off-peak season for chips.