PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1485752
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1485752
Semiconductor Foundry Market size was valued at USD 89,456.78 million in 2023, expanding at a CAGR of 5.5% from 2024 to 2032.
The primary purpose of a semiconductor foundry is to provide fabrication services to companies or individuals who want to create semiconductor-based products but do not have the resources or expertise to manufacture the chips themselves. In the semiconductor business, foundries play a crucial role by providing manufacturing capacity to chip design companies that do not have fabrication facilities. The manufacturing of semiconductors is now more flexible and affordable due to the outsourcing strategy. The vital role semiconductor foundries play in supplying chips for automotive applications drives the need for their services.
Semiconductor Foundry Market- Market Dynamics
Growing Need for Semiconductor Foundry in Consumer Electronics
Modern consumer electronics, such as smartphones, tablets, wearables, and smart home devices, require advanced semiconductor technologies to meet the demands for higher performance, lower power consumption, and smaller form factors. Semiconductor foundries play a crucial role in manufacturing these complex chips. For instance, in India, the scheme for setting up Semiconductor Fabs in India provides fiscal support to eligible applicants for setting up Semiconductor Fabs which is aimed at attracting large investments for setting up semiconductor wafer fabrication facilities in the country. In addition, the Design Linked Incentive (DLI) Scheme offers financial incentives, design infrastructure support across various stages of development and deployment of semiconductor design for Integrated Circuits (ICs), Systems on Chips (SoCs), Systems & IP Cores and semiconductor linked design.
Semiconductor Foundry Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 5.5% over the forecast period (2024-2032)
Based on the type of service segmentation, the pure-play foundry was predicted to show maximum market share in the year 2023
Based on application segmentation, automotive was the leading type in 2023
Based on region, North America was the leading revenue generator in 2023
The Global Semiconductor Foundry Market is segmented based on Type of service, Application, Technology Node, and Region.
The market is divided into three categories based on the type of service: Pure Play Foundry, IDMs and others are included in the market segmentation of semiconductor foundries based on Foundry. The market leader, Pure Play Foundry, is anticipated to develop at the fastest rate throughout the projection period. This is because the market is expected to develop throughout the forecast period due to the rising demand for consumer electronics.
The market is divided into six categories based on application: Communication, Consumer Electronics, Healthcare, Automotive, Computer and Others. The semiconductor foundry market revenue was dominated by the automotive semiconductor foundry segment. The need for semiconductors is mostly being driven by the growing need for safer personal transportation as well as the expansion of electric and driverless vehicles. Semiconductors are mostly used in electronic control units, entertainment systems, sensors, and other electronic auto equipment found in automobiles.
Semiconductor Foundry Market- Geographical Insights
North America is the major economic area, actively creating self-sufficient ICT industry supply chains with the semiconductor industry as a primary focal area in response to the emergence of technology sovereignty. In addition to export control and the implementation of the CHIPS Act, the United States has collaborated with the Netherlands, Japan, and other countries to limit China's procurement of semiconductor equipment tools to curb the country's technological advancements in semiconductors. In addition, governments in semiconductor foundry hubs such as the United States, Taiwan, South Korea, and others are investing and providing incentives to boost their respective nations' industrial footprint. For instance, in May 2021, the South Korean government said that it planned to invest USD 451 billion in tax cuts to support chipmakers in the wake of a severe worldwide shortage of essential components. These tendencies should strengthen each nation's position in the global market.
Prominent market players including TSMC, Fujitsu Semiconductor, Samsung Group, GlobalFoundries, STMicroelectronics and others are heavily investing in R&D to expand their product lines, which will spur further growth in the semiconductor foundry industry. Many electronics companies, especially those focused on design and innovation, outsource semiconductor manufacturing to foundries rather than investing in expensive fabrication facilities. For instance, in February 2024, Indian IT major Wipro expanded its collaboration with Intel Foundry to accelerate chip design innovation in the semiconductor and hi-tech space. To expand their global presence, market players are also implementing a variety of strategic measures, including the introduction of new products, signing contracts, merging with other companies, investing more, and working together.
In September 2023, China launched a new state-backed investment fund that aims to raise about $40 billion for its semiconductor sector.
In February 2024, HCL Technologies (HCLTech) announced a collaboration with Intel Foundry to co-develop customized silicon solutions for semiconductor manufacturers, system OEMs, and cloud service providers to enhance foundry services.
GLOBAL SEMICONDUCTOR FOUNDRY MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS
TSMC
DB HiTek
Fujitsu Semiconductor
GlobalFoundries
Magnachip
Powerchip
Samsung Group
Semiconductor Manufacturing International Corporation
STMicroelectronics
Tower Semiconductor Ltd.
United Microelectronics Corporation
X-Fab
Others