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

Semiconductor Foundry Market Drivers

• The increasing demand for integrated circuits (ICs) for use in automobiles, electronic goods, medical equipment, military hardware, and smart home appliances is one of the major factors driving market growth. The growing global adoption of IoT-enabled devices is going to drive up the requirement for integrated circuits (ICs). Furthermore, government funding for semiconductor technology advancement from a variety of countries is propelling the sector forward and driving the expansion of the Semiconductor Foundry Market.

• Foundries are focusing on automation, machine learning, and analytics. These technologies' benefits, such as optimising the production process and increasing yield without sacrificing quality, are driving their demand. With increased production capacity and lower costs, vendors are expected to take on larger production contracts, resulting in significantly increased supplies and covering shortages in a variety of industries. The cost of constructing cutting-edge chip foundries has risen exponentially, putting pressure on the industry. Performance gains are slowing, making specialised chips more appealing. Some design decisions that contribute to chip universality may be suboptimal for certain computing tasks.

Semiconductor Foundry Market Restraints

• Tariff disruption and a shift in global trade are threatening growth. The industry is heavily reliant on the United States, which has long been a prominent country with a dominant market share. With modifications in the country's leadership, the US has begun to impose restrictions on trade with China, and if the restrictions continue, the country's market share is expected to fall by 16%. As a result, rising tensions with China are expected to erode the US semiconductor market's dominance, with the focus shifting to Asia Pacific in the coming years. Furthermore, tariffs are levied on virtually all industrial goods and materials used in the production of chips.