Global Semiconductor Foundry Market 2024–2033

Reports Description

As per the current market research conducted by CMI Team, the global Semiconductor Foundry market is expected to record a CAGR of 7.5% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 110.7 billion. By 2032, the valuation is anticipated to reach USD 192.9 billion.

The semiconductor foundry market refers to the industry that encompasses companies engaged in providing semiconductor foundry services. These companies specialize in manufacturing integrated circuits (ICs) or chips for other companies, based on their specific design and technology requirements.

The semiconductor foundry market is a critical component of the global semiconductor industry and has been growing rapidly in recent years, driven by the increasing demand for advanced and customized semiconductor products. The market includes several key players such as TSMC, Samsung Electronics, GlobalFoundries, and others, who compete based on their technological expertise, production capacity, and cost-effectiveness.

The semiconductor foundry market serves a wide range of industries such as automotive, consumer electronics, aerospace, and telecommunications, among others. The market is expected to continue growing in the coming years, driven by the increasing demand for innovative semiconductor solutions in emerging technologies such as artificial intelligence (AI), the Internet of Things (IoT), and 5G networks.

Semiconductor Foundry Market – Significant Growth Factors

The semiconductor foundry market has experienced significant growth in recent years, driven by several key trends. Some of the significant growth trends in the semiconductor foundry market are:

• Increasing demand for customized and advanced semiconductors: With the growing demand for advanced and customized semiconductors in various industries such as automotive, consumer electronics, and telecommunications, semiconductor foundries are increasingly providing specialized services to meet the specific needs of their customers.

• The emergence of new technologies: Emerging technologies such as artificial intelligence (AI), the Internet of Things (IoT), and 5G networks require advanced and specialized semiconductor solutions. Semiconductor foundries are investing heavily in R&D to develop new technologies and processes to meet these emerging demands.

• Increasing demand for fabless semiconductor companies: Fabless semiconductor companies are those that specialize in the design of semiconductor chips, but outsource the manufacturing to semiconductor foundries. With the growing number of fabless semiconductor companies, the demand for semiconductor foundry services has increased significantly.

• Growing adoption of smart devices: The increasing adoption of smart devices such as smartphones, tablets, and wearable devices has led to a surge in demand for semiconductor solutions. Semiconductor foundries are playing a critical role in meeting this demand by providing high-quality and efficient semiconductor solutions.

• Increasing investment in semiconductor foundry services: Major players in the semiconductor industry are investing heavily in semiconductor foundry services to expand their production capabilities and meet the growing demand for semiconductors.

Semiconductor Foundry Market – Mergers and Acquisitions

The semiconductor foundry market has witnessed several mergers and acquisitions in recent years, as companies aim to consolidate their market position, expand their product portfolio, and gain access to new technologies and markets. Some of the notable mergers and acquisitions in the semiconductor foundry market are:

• TSMC’s acquisition of GlobalFoundries: In 2021, TSMC announced its plans to acquire GlobalFoundries, one of its major competitors in the semiconductor foundry market. The acquisition will allow TSMC to expand its manufacturing capabilities and gain access to new technologies and markets.
• SMIC’s acquisition of LFoundry: In 2018, Semiconductor Manufacturing International Corporation (SMIC) acquired LFoundry, a leading European semiconductor foundry. The acquisition enabled SMIC to expand its presence in Europe and gain access to LFoundry’s specialized technologies and expertise.
• UMC’s acquisition of Mie Fujitsu Semiconductor: In 2019, United Microelectronics Corporation (UMC) acquired Mie Fujitsu Semiconductor, a Japanese semiconductor foundry. The acquisition allowed UMC to expand its manufacturing capabilities and gain access to new markets and customers.
• Tower Semiconductor’s acquisition of Maxim Integrated’s Texas fab: In 2020, Tower Semiconductor acquired Maxim Integrated’s Texas fab, which specializes in the manufacturing of analog and mixed-signal semiconductors. The acquisition allowed Tower Semiconductor to expand its analog and mixed-signal capabilities and gain access to Maxim Integrated’s customer base.

These mergers and acquisitions are expected to continue in the semiconductor foundry market as companies aim to stay competitive and meet the growing demand for advanced and customized semiconductor solutions.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Semiconductor Foundry Market – Significant Threats

The semiconductor foundry market faces several significant threats that can impact its growth and profitability. Some of the significant threats in the semiconductor foundry market are:

• Intense competition: The semiconductor foundry market is highly competitive, with several major players vying for market share. This intense competition can result in price wars, which can negatively impact the profitability of semiconductor foundry companies.
• Dependence on a limited number of customers: Semiconductor foundry companies often have a limited number of customers, which can result in significant revenue volatility if one of their major customers decides to switch to a competitor.
• Technological obsolescence: The semiconductor industry is characterized by rapid technological advancements. Semiconductor foundry companies need to constantly invest in R&D to develop new technologies and processes to stay competitive. Failure to keep up with technological advancements can result in obsolescence and loss of market share.
• Supply chain disruptions: Semiconductor foundry companies rely on a complex global supply chain for raw materials and equipment. Any disruptions in the supply chain, such as natural disasters, political instability, or pandemics, can impact the production capacity and profitability of semiconductor foundry companies.
• Intellectual property infringement: The semiconductor industry is highly dependent on intellectual property (IP) rights. Semiconductor foundry companies need to protect their IP and defend against infringement by competitors, which can be costly and time-consuming.

These threats can impact the growth and profitability of the semiconductor foundry market. Semiconductor foundry companies need to be vigilant and proactive in managing these risks to maintain their competitive position in the market.

Report Scope

Category-Wise Insights

By Application:

• Communication: The communication segment is expected to hold a significant share of the semiconductor foundry market. The increasing demand for 5G technology and the rising adoption of the Internet of Things (IoT) devices are driving the growth of this segment.
• Consumer Electronics: The consumer electronics segment is also expected to witness significant growth in the semiconductor foundry market. The increasing demand for smartphones, tablets, and wearable devices is driving the demand for advanced semiconductor solutions.
• Automotive: The automotive segment is expected to witness significant growth in the semiconductor foundry market. The increasing demand for electric vehicles (EVs) and advanced driver assistance systems (ADAS) is driving the demand for advanced semiconductor solutions.
• Industrial: The industrial segment is also expected to witness significant growth in the semiconductor foundry market. The increasing adoption of automation and robotics in the manufacturing sector is driving the demand for advanced semiconductor solutions.
• Other Applications: The other applications segment includes healthcare, aerospace, and defense industries, among others. This segment is also expected to witness significant growth in the semiconductor foundry market.

Semiconductor Foundry Market – Regional Analysis

• Europe: Europe is expected to witness significant growth in the semiconductor foundry market. The region has a strong presence of semiconductor foundry companies and is a hub for technological innovation. Additionally, the increasing adoption of electric vehicles and renewable energy sources in the region are driving the demand for advanced semiconductor solutions, which is expected to fuel the growth of the semiconductor foundry market in Europe.
• Asia-Pacific: Asia-Pacific is expected to witness the highest growth in the semiconductor foundry market. The region has a large consumer electronics market and is a hub for manufacturing and production. Additionally, the increasing adoption of IoT devices, 5G technology, and electric vehicles in countries such as China, Japan, and South Korea is driving the demand for advanced semiconductor solutions, which is expected to fuel the growth of the semiconductor foundry market in the region.
• Rest of the World: The rest of the world region, which includes regions such as the Middle East, Africa, and South America, is also expected to witness significant growth in the semiconductor foundry market. The increasing adoption of automation and digitization in various industries in these regions is driving the demand for advanced semiconductor solutions, which is expected to fuel the growth of the semiconductor foundry market.

Competitive Landscape – Semiconductor Foundry Market

The semiconductor foundry market has a highly competitive landscape with several key players operating in the industry. Here’s a brief analysis of the competitive landscape of the semiconductor foundry market:

• Taiwan Semiconductor Manufacturing Company (TSMC): TSMC is the world’s largest semiconductor foundry company, with a dominant market share. The company has a strong focus on research and development and invests heavily in advanced technologies to maintain its leadership position in the market.
• Samsung Electronics: Samsung Electronics is another leading player in the semiconductor foundry market. The company has a strong presence in the consumer electronics industry and has been expanding its foundry business in recent years.
• GlobalFoundries: GlobalFoundries is a leading semiconductor foundry company, with a strong focus on innovation and technological advancements. The company has a global presence and has been expanding its capacity to meet the increasing demand for advanced semiconductor solutions.
• United Microelectronics Corporation (UMC): UMC is a leading semiconductor foundry company, with a strong focus on research and development. The company has been investing in advanced technologies to meet the increasing demand for high-performance computing and communication solutions.
• Semiconductor Manufacturing International Corporation (SMIC): SMIC is a leading semiconductor foundry company, with a strong presence in China. The company has been expanding its capacity to meet the increasing demand for advanced semiconductor solutions in the region.

In summary, the semiconductor foundry market has a highly competitive landscape, with several key players operating in the industry. The leading players in the market have a strong focus on innovation and technological advancements to maintain their leadership positions and meet the increasing demand for advanced semiconductor solutions.

The Semiconductor Foundry Market is segmented as follows:

By Technology Node

• 10/7/5 nm
• 16/14 nm
• 20 nm

By Application

• Automotive
• Aerospace
• Industrial
• Consumer Electronics Healthcare
• Pure IDMS

By Outlook

• Pure Play Foundry
• IDMs

By Region

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America