Global Semiconductor Foundry Market Growth (Status and Outlook) 2024-2030
The Semiconductor Foundry market was valued at USD 110.95 Billion in 2023, with a growing trend due to the increasing demand for semiconductor foundry services, such as wafer fabri
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Introduction
Foundry, a business model of the semiconductor industry, specializes in semiconductor wafer manufacturing, and is commissioned by other IC design companies instead of their own designs.
The foundry mode is divided into Pure-play Foundry mode and IDM Foundry. The Pure-play Foundry doesn't do design. They mainly make products for fabless company. The business scope of IDM manufacturers covers various links such as IC design, IC manufacturing, packaging and testing, and even extends to downstream electronic terminals.
Market Insights
According to the Publishers’ latest study, the global Semiconductor Foundry market size was valued at US$ 110950 million in 2023. With growing demand in downstream market, the Semiconductor Foundry is forecast to a readjusted size of US$ 194260 million by 2030 with a CAGR of 8.3% during review period.
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The global top five semiconductor foundry players include TSMC, Samsung Foundry, UMC, GlobalFoundries, and SMIC, accounting for more than 80% of the market share. The largest player is TSMC, with a market share of more than 50%. North America is the global most important semiconductor foundry consumer market, with a market share of more than 50%. In terms of type, the pure-play foundry model has a market share of over 80%. In the application field, the market share of mobile phones has reached more than 40%.
Key Features:
The report on Semiconductor Foundry market reflects various aspects and provide valuable insights into the industry.
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Trends:
The global semiconductor foundry market has experienced several key trends in recent years:
Shift Towards Advanced Nodes: The industry has seen a steady migration towards smaller process nodes, with leading foundries continuously investing in the development of 7nm, 5nm, and even 3nm process technologies. This shift is driven by the demand for higher performance, lower power, and increased integration in a wide range of applications, from mobile devices to high-performance computing.
Diversification of End-Use Applications: The semiconductor foundry market has become increasingly diversified, serving a wide range of end-use industries, including consumer electronics, automotive, industrial, healthcare, and data centers. This diversification has helped foundries mitigate risks and capitalize on growth opportunities across various market segments.
Expanding Role of China: China has emerged as a significant player in the global semiconductor foundry market, with the rapid expansion of domestic foundries, such as SMIC and Hua Hong Semiconductor. This growth is fueled by government initiatives, investment in research and development, and the increasing demand for semiconductors within the Chinese market.
Consolidation and Strategic Partnerships: The semiconductor industry has witnessed a wave of consolidation, with major foundries such as TSMC and GlobalFoundries engaging in strategic partnerships and acquisitions to strengthen their market position and technological capabilities.
Adoption of New Technologies: Foundries are continuously investing in the development and adoption of new technologies, such as 3D transistors, extreme ultraviolet (EUV) lithography, and advanced packaging solutions, to meet the ever-evolving demands of the semiconductor industry.
Drivers:
The key drivers fueling the growth of the global semiconductor foundry market include:
Increasing Demand for Electronic Devices: The proliferation of smartphones, tablets, smart home devices, and other consumer electronics is driving the demand for semiconductor chips, which in turn, is creating opportunities for foundries to expand their capacity and capabilities.
Advancements in Automotive and Industrial Electronics: The growing adoption of advanced driver-assistance systems (ADAS), electric vehicles, and the increasing integration of electronics in industrial automation and control systems are contributing to the demand for semiconductor foundry services.
Expansion of Cloud Computing and Data Centers: The rising demand for high-performance computing, storage, and data processing capabilities in cloud computing and data centers is fueling the need for more advanced semiconductor chips, which foundries are positioned to meet.
Internet of Things (IoT) and Edge Computing: The exponential growth of the IoT ecosystem and the increasing adoption of edge computing devices are driving the need for specialized semiconductor chips, creating opportunities for foundries to cater to this emerging market.
Technological Innovations: Advancements in semiconductor fabrication processes, such as the development of smaller process nodes, 3D transistors, and advanced packaging solutions, are enabling foundries to offer more efficient and cost-effective solutions to their customers.
Opportunities:
The global semiconductor foundry market presents several opportunities for growth and expansion:
Expansion into Emerging Markets: Foundries can explore opportunities in emerging markets, such as Southeast Asia, Africa, and Latin America, where the demand for electronic devices and the adoption of new technologies are on the rise.
Diversification into New End-Use Segments: Foundries can diversify their product portfolios and expand into new end-use segments, such as healthcare, aerospace, and defense, to capitalize on the growing demand for specialized semiconductor chips in these industries.
Collaboration with Fabless Semiconductor Companies: Strengthening partnerships with fabless semiconductor companies, which focus on chip design but outsource the manufacturing to foundries, can provide foundries with a steady stream of orders and revenue.
Advancements in Process Technologies: Continuous investment in the development of advanced process technologies, such as 3nm and beyond, can enable foundries to maintain their technological edge and meet the evolving needs of their customers.
Optimization of Manufacturing Efficiency: Foundries can focus on improving their manufacturing efficiency, yield, and operational excellence to enhance their competitiveness and profitability in the market.
Threats:
The global semiconductor foundry market also faces several threats and challenges:
Geopolitical Tensions: Ongoing trade disputes and geopolitical tensions, particularly between the United States and China, can disrupt the global supply chain and create uncertainties for foundries operating in multiple regions.
Overcapacity Concerns: With the continuous expansion of foundry capacity, there are concerns about potential overcapacity in the market, which could lead to increased competition and pricing pressures.
Technological Transition Risks: The migration to advanced process nodes, such as 7nm and 5nm, requires significant investments in research and development, as well as the acquisition of new equipment and infrastructure. Foundries face the risk of technology obsolescence and the need to constantly adapt to the evolving industry landscape.
Talent Shortage: The semiconductor industry, including the foundry segment, is facing a shortage of skilled engineers and technical personnel, which can hinder the industry's ability to keep pace with technological advancements.
Regulatory and Environmental Challenges: Foundries must comply with stringent environmental regulations and address concerns related to energy consumption, water usage, and waste management, which can impact their operational costs and profitability.
Market Size and Growth: The research report provide an overview of the current size and growth of the Semiconductor Foundry market. It may include historical data, market segmentation by Type (e.g., Pure-play Foundry, IDM Foundry), and regional breakdowns.
Competitive Landscape: The research report provides analysis of the competitive landscape within the Semiconductor Foundry market. It includes profiles of key players, their market share, strategies, and product offerings. The report can also highlight emerging players and their potential impact on the market.
Government Policies and Incentives: The research report analyse the impact of government policies and incentives on the Semiconductor Foundry market. This may include an assessment of regulatory frameworks, subsidies, tax incentives, and other measures aimed at promoting Semiconductor Foundry market. The report also evaluates the effectiveness of these policies in driving market growth.
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Market Forecasts and Future Outlook: The global semiconductor foundry market is poised for continued growth in the coming years, driven by the increasing demand for semiconductor chips across various end-use industries.
Market Segmentation:
Semiconductor Foundry market is split by Type and by Application. For the period 2019-2030, the growth among segments provides accurate calculations and forecasts for consumption value by Type, and by Application in terms of value.
Segmentation by type
Pure-play Foundry
IDM Foundry
Segmentation by application
Smartphones
High Performance Computing (HPC)
Internet of Things (IoT)
Automotive
Digital Consumer Electronics (DCE)
Other
This report also splits the market by region:
Americas
United States
Canada
Mexico
Brazil
APAC
China
Japan
Korea
Southeast Asia
India
Australia
Europe
Germany
France
UK
Italy
Russia
Middle East & Africa
Egypt
South Africa
Israel
Turkey
GCC Countries
The below companies that are profiled have been selected based on inputs gathered from primary experts and analyzing the company's coverage, product portfolio, its market penetration.
TSMC
Samsung Foundry
UMC
GlobalFoundries
SMIC
PSMC
Hua Hong Semiconductor
VIS
Tower Semiconductor
HLMC
Dongbu HiTek
WIN Semiconductors
X-FAB Silicon Foundries
SkyWater Technology
Table of Contents
1 Scope of the Report
1.1 Market Introduction
1.2 Years Considered
1.3 Research Objectives
1.4 Market Research Methodology
1.5 Research Process and Data Source
1.6 Economic Indicators
1.7 Currency Considered
1.8 Market Estimation Caveats
2 Executive Summary
2.1 World Market Overview
2.1.1 Global Semiconductor Foundry Market Size 2019-2030
2.1.2 Semiconductor Foundry Market Size CAGR by Region 2019 VS 2023 VS 2030
2.2 Semiconductor Foundry Segment by Type
2.2.1 Pure-play Foundry
2.2.2 IDM Foundry
2.3 Semiconductor Foundry Market Size by Type
2.3.1 Semiconductor Foundry Market Size CAGR by Type (2019 VS 2023 VS 2030)
2.3.2 Global Semiconductor Foundry Market Size Market Share by Type (2019-2024)
2.4 Semiconductor Foundry Segment by Application
2.4.1 Smartphones
2.4.2 High Performance Computing (HPC)
2.4.3 Internet of Things (IoT)
2.4.4 Automotive
2.4.5 Digital Consumer Electronics (DCE)
2.4.6 Other
2.5 Semiconductor Foundry Market Size by Application
2.5.1 Semiconductor Foundry Market Size CAGR by Application (2019 VS 2023 VS 2030)
2.5.2 Global Semiconductor Foundry Market Size Market Share by Application (2019-2024)
3 Semiconductor Foundry Market Size by Player
3.1 Semiconductor Foundry Market Size Market Share by Players
3.1.1 Global Semiconductor Foundry Revenue by Players (2019-2024)
3.1.2 Global Semiconductor Foundry Revenue Market Share by Players (2019-2024)
3.2 Global Semiconductor Foundry Key Players Head office and Products Offered
3.3 Market Concentration Rate Analysis
3.3.1 Competition Landscape Analysis
3.3.2 Concentration Ratio (CR3, CR5 and CR10) & (2022-2024)
3.4 New Products and Potential Entrants
3.5 Mergers & Acquisitions, Expansion
4 Semiconductor Foundry by Regions
4.1 Semiconductor Foundry Market Size by Regions (2019-2024)
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