Semiconductor Foundry Market

Market Overview:

The global semiconductor foundry market size reached US$ 77.8 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 112.9 Billion by 2028, exhibiting a growth rate (CAGR) of 6.2% during 2023-2028. The rise in demand for smartphones and tablets, ongoing product innovations, and the bolstering growth of the semiconductor wafer industry, represent some of the key factors driving the market.

The Emerging Trends of Miniaturization and The Rising Demand for Smart Devices

The rising proliferation of smart devices such as smartphones, tablets, smartwatches, and laptops, along with easy access to high-speed internet, is creating a positive outlook for market growth. Integrated circuits (ICs) used in these devices enable the functions of amplifiers, oscillators, memory, time counter, and microprocessors, among others. Besides this, the increasing adoption of innovative technologies, such as cloud computing, artificial intelligence (AI), and the Internet of Things (IoT) devices, is contributing to the market growth. Moreover, the rising demand for miniaturized personal electronic products that consume less power is prompting semiconductor foundries to reduce the size of semiconductor wafers and lower IC power consumption, which is creating remunerative growth opportunities for the market.

Competitive analysis such as market structure, market share by key players, player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. The market is concentrated, with the leading players accounting for the majority of market shares. The volume of new market entries is low in the semiconductor foundry due to high capital investments, economies of scale, and the strong presence of well-established players in the market.

What is Semiconductor Foundry?

A semiconductor foundry, also known as a silicon foundry or a fab, is a specialized manufacturing facility that produces integrated circuits (ICs) or chips that power modern electronic devices, including smartphones, laptops, cars, and medical equipment. The process of producing chips in a foundry typically involves designing, mask making, wafer fabrication, packaging, and testing. It employs advanced manufacturing equipment and processes to create high-quality chips with high yields and low defect rates. Semiconductor foundries provide a wide range of services, including wafer fabrication, designing, packaging, testing, and logistics. It usually produces chips on a contract basis and develops and manufactures custom designs based on customers’ specifications. In addition to this, it offers a streamlined, cost-effective semiconductor production solution with an end-to-end approach.

COVID-19 Impact:

The COVID-19 pandemic had a considerable effect on the production and supply chain of semiconductor foundries. With severe disruptions in the global supply chain for semiconductors during the lockdown, there was a subsequent slowdown in the production of semiconductor chips. The lack of availability of components resulted in a shortage of chips and a subsequent decrease in demand. Apart from this, the lowered demand for semiconductor chips led to a surge in supply, resulting in a drop in semiconductor prices. In addition to this, the outbreak has caused a decline in the amount of capital available for investments in the semiconductor foundry market, which reduced the number of new projects being undertaken, hampering the market growth. Furthermore, the pandemic threatened a logistical and transportation slowdown due to the restrictions on road movement, which impacted the supply of raw materials and integrated chips. This has caused a further diminution in demand for semiconductor chips, further curtailing the revenue of semiconductor foundries.

Semiconductor Foundry Market Trends:

The growing demand for consumer electronics, including smartphones, tablets, laptops, and other devices, on account of rapid digitization and urbanization across the globe is primarily driving the market growth. Moreover, the increasing need for electronic components and systems in the automotive sector due to the rising demand for electric vehicles (EVs) is creating a positive outlook for the market. In line with this, the surging demand for advanced driver-assistance systems (ADAS), infotainment systems, and engine control units to improve safety, comfort, and efficiency in vehicles is aiding in market expansion. In addition to this, the large-scale adoption of the Internet of Things (IoT), artificial intelligence (AI), and high-performance computing (HPC) and the emergence of 5G technology are impelling the demand for semiconductors in healthcare, transportation, and industrial automation. Concurrent with this, the proliferation of cloud-based services and the rise in the number of data centres are acting as significant growth-inducing factors. Furthermore, innovative technological advancements, such as the development of graphics processing units (GPUs) and tensor processing units (TPUs), are presenting remunerative growth opportunities for the market. Besides this, the surging employment of semiconductor foundry services from fabless semiconductor companies for outsourcing manufacturing processes to save cost is strengthening the market growth.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the global semiconductor foundry market report, along with forecasts at the global, regional and country level from 2023-2028. Our report has categorized the market based on technology node, foundry type and application.

Technology Node Insights:

• 10/7/5nm
• 16/14nm
• 20nm
• 45/40nm
• Others
   

The report has provided a detailed breakup and analysis of the semiconductor foundry market based on the technology node. This includes 10/7/5nm, 16/14nm, 20nm, 45/40nm, and others. According to the report, 10/7/5nm represented the largest segment as they are faster and smaller than other nodes and are extensively used in the production of high-performance processors, graphics cards, and other advanced chips. In addition to this, the widespread demand for high-performance computing, artificial intelligence (AI), consumer electronics, and wireless communication systems is propelling the market forward.

Foundry Type Insights:

• Pure Play Foundry
• IDMs
   

A detailed breakup and analysis of the semiconductor foundry market based on the foundry type has also been provided in the report. This includes pure play foundry and IDMs. According to the report, IDMs accounted for the largest market share due to the increasing use of integrated circuits (ICs) in cars, consumer electronics, and medical devices. Besides this, extensive investments by the leading market players in numerous research and development (R&D) to increase their product lines are contributing to the market growth.

Application Insights:

• Communication
• Consumer Electronics
• Computer
• Automotive
• Others
   

A detailed breakup and analysis of the semiconductor foundry market based on the application has also been provided in the report. This includes communication, consumer electronics, computer, automotive, and others. According to the report, communication accounted for the largest market share due to the rising proliferation of consumer devices such as smartphones, tablets, laptops, and smartwatches. Moreover, the expanding demand for high-speed data transmission and wireless communication due to the increasing adoption of cloud computing and big data is strengthening the market growth.

Regional Insights:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada), Asia-Pacific (China, Japan, India, South Korea, Australia, Indonesia and others), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others), Latin America (Brazil, Mexico and others), and Middle East and Africa. According to the report, Asia Pacific was the largest market for semiconductor foundry. Some of the factors driving the Asia Pacific semiconductor foundry market included the growing demand for electronic devices such as smartphones, laptops, and tablets. Moreover, the rising popularity of autonomous and electronic vehicles combined with the ongoing advancements in semiconductor manufacturing technologies are aiding in market expansion.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the global semiconductor foundry market. Some of the companies covered in the report include:

• TSMC
• DB HiTek
• Fujitsu Semiconductor
• GlobalFoundries
• Magnachip
• Powerchip
• Samsung Group
• Semiconductor Manufacturing International Corporation
• STMicroelectronics
• Tower Semiconductor Ltd.
• United Microelectronics Corporation
• X-Fab
   

Please note that this only represents a partial list of companies, and the complete list has been provided in the report.

Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the semiconductor foundry market from 2017-2028.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global semiconductor foundry market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the semiconductor foundry industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.