Semiconductor Foundry Market Research Report 2024 — Predicting Share and Scope for 2024–2031
Semiconductor Foundry Market Overview:
The global semiconductor foundry market is expected to reach USD 216.67 billion by 2030, growing at a CAGR of 7.54% from 2024.
Major applications of foundry-produced chips include consumer electronics, automotive, communication, and computing.
Foundries manufacture semiconductors designed by fabless companies, playing a crucial role in the global electronics industry.
Increasing demand for AI, 5G, automotive electronics, and cloud computing are driving the market.
Semiconductor Foundry Market Drivers:
Technological advancements: Increasing demand for smaller, faster, and more efficient chips is driving investments in advanced manufacturing technologies like FinFET and EUV lithography.
Growing demand for connected devices: The proliferation of smartphones, wearables, and other internet-connected devices is fueling the need for more semiconductors.
Government support: Many governments are offering subsidies and tax breaks to encourage semiconductor manufacturing within their borders.
Semiconductor Foundry Market Restraints:
High capital costs: Building and operating a modern foundry is very expensive, which can limit entry for new players.
Volatile demand: The semiconductor industry is cyclical, and demand can fluctuate significantly, making it difficult for foundries to plan and invest.
Geopolitical tensions: Trade wars and other geopolitical tensions can disrupt the supply chain and increase costs.
Semiconductor Foundry Market Opportunities:
Emerging applications: The semiconductor foundry market growth of AI, 5G, and other emerging technologies is creating new opportunities for foundries.
Specialized processes: Foundries that offer specialized processes like analog/mixed-signal or power management can attract premium customers.
Fabless model: The growing number of fabless semiconductor companies is creating demand for foundry services.
Semiconductor Foundry Market Key Players:
Taiwan Semiconductor Manufacturing Company Limited
United Microelectronics Corporation
Samsung
Semiconductor Manufacturing International Corporation (SMIC)
Globalfoundries Inc.
DB HITEK
Intel Corporation
Hua Hong Semiconductor Limited
STMicroelectronics
Tower Semiconductor
X-FAB Silicon Foundries SE
NXP Semiconductors NV
Renesas Electronics Corporation
Microchip Technologies Inc.
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Semiconductor Foundry Market Segmentation:
By Foundry Model: Pure-Play Foundry and Integrated Device Manufacturer (IDM)
By End-User: Automotive, Aerospace & Defense, Healthcare, Consumer Electronics, Telecommunication, and Others
Semiconductor Foundry Market Regional Analysis:
Asia Pacific: The Global Leader, Fueled by Innovation and Ambition
Dominant market share: Claiming over 45% of the global foundry market, Asia Pacific reigns supreme. This dominance is fueled by giants like TSMC, Samsung, and SMIC, known for their advanced technology capabilities and aggressive expansion plans.
Government support: China, a key player in the region, actively invests in its domestic semiconductor industry through initiatives like the “Made in China 2025” plan. This government support fuels rapid growth and fosters innovation.
Fast-growing end-user markets: The booming demand for electronics in the region, driven by a large and tech-savvy population, further propels the foundry market.
North America: Innovation Hub with Established Giants
Second-largest market: Boasting a 30% share, North America houses major foundries like GlobalFoundries, Intel, and Micron. These players are known for their innovation in specialty technologies like analog and mixed-signal chips.
Focus on advanced research and development: Leading universities and research institutions in the region foster a culture of innovation, driving advancements in next-generation technologies.
Established infrastructure and supply chains: North America benefits from well-developed infrastructure and mature supply chains, facilitating efficient production and distribution.
Europe: Niche Player with a Focus on Specialization
Mature market: Europe holds a 20% share, focusing on specialty technologies like power management chips and automotive semiconductors. This niche focus ensures competitiveness despite a smaller market size.
Strong regulatory environment: Europe prioritizes data privacy and security, leading to stricter regulations that drive innovation in secure chip design.
Collaboration and partnerships: European players often collaborate and partner with each other, leveraging combined strengths and resources.
Semiconductor Foundry Market Recent Developments:
2023:
TSMC (Taiwan):
Began mass production of 3nm chips, marking a significant technological leap.
Announced plans to invest USD 120 billion in expanding capacity over the next three years.
Entered into a joint venture with Sony to build a new fab in Japan.
GlobalFoundries (USA):
Started construction of a new fab in Singapore, aiming to boost production capacity.
Announced plans to acquire IBM’s PowerPC microprocessor business.
Secured USD 1.5 billion in funding from the US government for chip manufacturing.
SMIC (China):
Achieved breakthrough in 7nm chip technology, narrowing the gap with leading foundries.
Announced plans to build a new fab in Shanghai, focusing on advanced technologies.
Secured funding from the Chinese government to support its expansion plans.
Samsung (South Korea):
Increased production of 5nm and 7nm chips to meet growing demand.
Announced plans to invest USD 17 billion in expanding its foundry business.
Entered into a partnership with Qualcomm to develop new chip technologies.
Intel (USA):
Announced plans to build two new fabs in the US, marking a major shift towards foundry services.
Partnered with TSMC to manufacture some of its chips.
Launched its own IDM 2.0 strategy to regain competitiveness in the foundry market.
2024 (so far):
TSMC:
Announced a price increase for its chip manufacturing services, reflecting rising costs and strong demand.
Partnered with Nvidia to develop new AI chips.
GlobalFoundries:
Completed construction of its fab in Singapore and started production.
Announced a partnership with AMD to develop new chips for data centers.
SMIC:
Continued to ramp up production of advanced chips, aiming to become a major player in the 7nm and beyond market.
Samsung:
Announced plans to invest USD 20 billion in building a new fab in Texas.
Partnered with Google to develop new AI chips.
Intel:
Started construction of its new fabs in the US and expects production to begin in 2025.
Announced plans to acquire Tower Semiconductor, further expanding its foundry capabilities.
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