USD 104.34 billion
Semiconductor Foundry Market Size, Share, Growth Analysis, By Technology(CMOS, BiCMOS, GaAs), By Foundry Type(Pure Play Foundry, IDMs), By Application(Automotive, Consumer Electronics, Industrial, Healthcare), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45O2029 |
Region:
Global |
Published Date: October, 2024
Pages:
221
|Tables:
95
|Figures:
79
Semiconductor Foundry Market Insights
Global Semiconductor Foundry Market size was valued at USD 106.92 billion in 2022 and is poised to grow from USD 115.6 billion in 2023 to USD 215.88 billion by 2031, growing at a CAGR of 8.12% during the forecast period (2024-2031).
The semiconductor foundry industry is being driven by innovations in 5G, the Internet of Things (IoT), machine learning, and artificial intelligence (AI). High-tech applications demand that the foundries invest heavily in research and development to come up with advanced process nodes such as 7nm, 5nm, 3nm, and 2nm. TSMC and Intel have announced that they would speed up their 2nm production process plans. TSMC has moved its 2nm plan forward to fiscal year 2026, while Intel has brought forward its 2nm plan to fiscal year 2024. Markets for AI, IoT, and other future technologies are growing rapidly. These technologies are being assimilated into most aspects of one's life, including the use of wearables, smart homes, healthcare, automation in industries, and cars that drive themselves. With this expansion, semiconductor foundries will have the chance to offer the various semiconductor solutions needed for AI and IoT devices. AI applications, including machine learning and deep learning require specialized hardware accelerators, such as graphics processing units, tensor processing units, and neural processing units, to successfully complete complex calculations. The Internet of Things ecological environment is a hub for billions of networked devices that collect and share data online. All such devices require semiconductor solutions in their system for wireless communication, sensor interfaces, power management, and security features.
US Semiconductor Foundry Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
IDMs
Fastest Growth
IDMs
Growth Rate
6.62% CAGR
Global Semiconductor Foundry Market By Geography ($ Bn)
Country Share for Asia-Pacific (%)
To get more reports on the above market click here to Buy The Report
Semiconductor Foundry Market Segmental Analysis
Global Semiconductor Foundry Market is segmented by Technology, Foundry Type, Application, and Region. Based on Technology, the market is segmented into CMOS, BiCMOS, GaAs. Based on Foundry Type, the market is segmented into Pure Play Foundry, IDMs. Based on Application, the market is segmented into Automotive, Consumer Electronics, Industrial, Healthcare, Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Technology
CMOS technology has the largest semiconductor foundry market share and remains the most dominant in the industry due to its widespread application in consumer electronics, automotive, industrial, and healthcare sectors. Due to its scalability, energy efficiency, and ability to integrate millions of transistors on a single chip, CMOS chips are the preferred choice. They are therefore ideal for high-performance, low-power devices such as microprocessors, laptops, sensors, and cellphones. CMOS will continue to dominate the market because the trend of shrinking electronic device size and performance improvement never stops, and low power is always in demand.
However, as per the semiconductor foundry market analysis, GaAs is expected to grow strongly because of its good qualities in high-frequency, high-speed, and power-efficient application. GaAs is gaining headway in fields including satellite communications, automobile radar, and 5G communication systems where performance at high frequencies and speeds is crucial, even if CMOS technology still dominates the market. Better electron mobility performance from GaAs allows for quicker operation in high-frequency and high-power applications. The market is expected to go up dramatically for GaAs-based devices in the forecast period as the automobile industry evolves into more complex radar systems and the telecoms industry continues to develop with 5G.
Analysis By Application
Based on the semiconductor foundry market forecast, the largest share of the market continues to be taken up by consumer electronics, with an increasingly high demand for semiconductor devices in wearable technology, TVs, computers, cellphones, and smart home appliances. Growth in this industry is driven by consumer demand for faster, smaller, and more powerful devices. This business of consumer electronics has high-volume manufacturing and rapid technical development. The leaders of this industry are companies such as Apple, Samsung, and Sony. The major consumers of semiconductors will be consumer electronics since the demand for next-generation gadgets and Internet of Things (IoT), augmented reality (AR), and virtual reality (VR) is going to shoot up.
On the contrary, the automotive sector will grow the most in terms of semiconductor requirements due to the advent of advanced driver-assistance systems, autonomous driving systems, and electric cars. Automotive applications require many semiconductor components, ranging from power management chips and sensors to microcontrollers and communication modules. The trend in automobile electrification, connection, and automation is driving the increased requirement for increasingly sophisticated semiconductor solutions. As the auto industry continues to implement newer technologies such as electric drivetrains, in-car infotainment, and autonomous driving, the demand for semiconductors is also projected to grow rapidly. This makes the automotive application segment one of the most promising sectors for future semiconductor foundry market growth.
Global Semiconductor Foundry Market By Technology
To get detailed analysis on other segments, Request For Free Sample Report
Semiconductor Foundry Market Regional Insights
The size and share of the semiconductor foundry market are maximum in Asia Pacific. Region has become a super place for semiconductor manufacturing particularly by China, Taiwan and South Korea. Strong foundries in this region with major share and years of semiconductor fabrications, such as TSMC, Samsung Foundry and SMIC support these countries. Taiwanese chip maker TSMC announced in April 2024 that it will be building its third semiconductor production facility in Phoenix, Arizona, in the United States. TSMC Arizona and the U.S. Department of Commerce have signed a memorandum of agreement under the CHIPS and Science Act, which may result in up to USD 6.6 billion in direct funding.
North America is expected to grow at the fastest pace during the forecast period due to the increasing requirement for semiconductor solutions in leading-edge applications such as data centers, 5G infrastructure, and driverless cars. These applications drive the requirement for semiconductor foundry services in the region as they demand sophisticated semiconductor technology. American semiconductor companies and foundries are continuously investing in R&D, technological advancement, and manufacturing capabilities to stay ahead of the competition and match the changing semiconductor foundry market trends. Investments keep driving the growth and innovation of the semiconductor foundry market. As part of the CHIPS and Science Act, the White House provided USD 5.0 billion for chip R&D programs in February 2024. The investment was witnessed to help support local manufacturing and innovation in semiconductors as the nation seeks to reduce dependence on overseas suppliers following global chip shortages.
Global Semiconductor Foundry Market By Geography
- Largest
- Fastest
To know more about the market opportunities by region and country, click here to
Buy The Complete Report
Semiconductor Foundry Market Dynamics
Semiconductor Foundry Market Drivers
R&D in Advanced Semiconductor Technologies
- The demand in the semiconductor foundry industry is increasing for leading-edge semiconductor technologies, such as 5G, AI, IoT, and electric cars. Devices with lower nodes are critical for high-performance applications, and their production thus depends on foundries like TSMC and Samsung. Foundries are expanding their capacity to produce chips that will be compact, more potent, and more efficient to meet the requirements of many industries.
Fabless Semiconductor Companies' Outsourcing
- The largest drivers of the semiconductor foundry market growth are the tendency of fabless semiconductor firms to outsource their manufacturing to specialist foundries. Chip design is the focus of companies such as Qualcomm, AMD, and Nvidia, who rely on foundries such as TSMC and GlobalFoundries for the manufacture. This outsourcing strategy increases the demand for foundry services, offering fabless businesses advanced manufacturing techniques without investing in expensive fabrication facilities.
Semiconductor Foundry Market Restraints
High Advanced Manufacturing Capital Expenditure
- High capital expenditure is required in the semiconductor foundry market for high-end manufacturing technologies, such as R&D, clean rooms, and cutting-edge lithography equipment. This involves very huge cost in establishing and maintaining them. For most smaller or young foundries, these costs would be too difficult. Firms such as Samsung and TSMC will manage to maintain such investments but it's hard for other foundries to improve their production capacities if they will stay competitive on high-tech semiconductor market.
Lack of Raw Materials and Disruption of Supply Chain
- Foundries face supply chain disruption factors, such as semiconductors and raw material deficiencies. Interventions by natural catastrophes, geopolitical unrests, and the COVID-19 epidemic have proved that global supply lines are just a thin facade. The lack of raw materials such as silicon wafers and rare earth elements could become severe bottlenecks to expansion as foundries battle through increased costs and longer leads.
Request Free Customization of this report to help us to meet your business objectives.
Semiconductor Foundry Market Competitive Landscape
The major companies are entering strategic partnerships with other key market leaders for the purpose of expanding their portfolio so that they can provide the most effective low-code and no-code solutions to serve the application needs of their clients. In addition, in partnership, the companies improve their know-how and reach out to a large consumer base, and thus they expand. The large companies produce innovative solutions to consumers and industries so that they cater to the increasing needs of holding on to customers.
Semiconductor Foundry Market Top Player’s Company Profiles
- Taiwan Semiconductor Manufacturing Company Limited
- United Microelectronics Corporation
- GlobalFoundries
- SMIC
- Tower Semiconductor
- Powerchip Semiconductor Manufacturing Corp.
- Vanguard International Semiconductor Corporation
- Hua Hong Semiconductor Limited
- DB HITEK
- Intel Corporation
- Samsung Group
- Dongbu HiTek
- Hua Hong Semiconductor Limited
- Infineon Technologies AG
- Renesas Electronics
- Microchip Technology Inc.
- Silicon Labs
- Broadcom, Inc.
- Cypress Semiconductor
- AnSem N.V.
- Maxim Integrated
- NXP Semiconductors
Semiconductor Foundry Market Recent Developments
- In September 2023, GlobalFoundries' US$4 billion expansion fabrication factory in Singapore was inaugurated. The new fab increases GF Singapore's annual capacity by 450,000 wafers (300mm), raising the total capacity of the site to about 1.5 million wafers (300mm) per year.
- In June 2023, Samsung Electronics Co., Ltd. - global leader in cutting-edge semiconductor technology presents its latest foundry technological advancements and business plan at the 7th annual Samsung Foundry Forum (SFF).
- In October 2022, Micron announced it would start building a chip-making factory in upstate New York, which the company had revealed. This foundry is expected to create more than 50,000 jobs and will cover as much space as 40 football fields. Over the next two decades, it could spend up to $100 billion on the factory.
Semiconductor Foundry Key Market Trends
- Transition to More Advanced Packaging and Smaller Nodes: Major moves in the semiconductor foundry include more advanced packaging techniques as well as reduced process nodes (5nm, 3nm). Reduced nodes offer higher transistor density, and better performance along with higher application efficiency in areas such as artificial intelligence, 5G, and high-performance computing. Packaging innovation in forms of chiplets and 3D stacking is rapidly gaining popularity since they exhibit better functionality as well as greater integration for applications facing reduced space.
- Geopolitical Emphasis on Semiconductor Manufacturing: The greater geopolitics is intensifying, and the greater will be the weaknesses it further opens in the world's supply chain. In fact, numerous nations are focusing more on indigenous manufacturing capabilities in semiconductors. Such programs, including U.S. CHIPS Act, besides other bills erupting all over Europe and Asia, are envisioned as a measure to improve indigenous manufacturing capabilities and lessen foreign foundry dependency. The market is shifting towards more regional, government-supported production due to government incentives and investments in semiconductor infrastructure.
Semiconductor Foundry Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, semiconductor foundries are growing at a rapid pace in response to strong industry demand from automotive, 5G, AI, and Internet of Things, and increasing outsourcing by fabless companies. Growth may be slowed, however, by supply chain disruptions and higher capital costs for innovative manufacturing. It will be defined by trends such as shrinking process nodes and advanced packaging technologies, and geopolitical initiatives in support of local production. All in all, the semiconductor foundry industry is set to continue a growth path with prospects and challenges that lie ahead as it evolves to changing technical and geopolitical environments.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 106.92 billion |
| Market size value in 2031 | USD 215.88 billion |
| Growth Rate | 8.12% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
To get a free trial access to our platform which is a one stop solution for all your data requirements for quicker decision making. This platform allows you to compare markets, competitors who are prominent in the market, and mega trends that are influencing the dynamics in the market. Also, get access to detailed SkyQuest exclusive matrix.
Buy The Complete Report to read the analyzed strategies adopted by the top vendors either to retain or gain market share
Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Semiconductor Foundry Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Semiconductor Foundry Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Semiconductor Foundry Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Semiconductor Foundry Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Semiconductor Foundry Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Semiconductor Foundry Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
USA (+1) 351-333-4748
