Semiconductor Foundry Market - Segmented by Type (Pure-play foundries, IDMs), End User (Consumer Electronics, Automotive Industrial), and Geography - Growth, Trends, and Forecast (2019 - 2024)

Semiconductor Foundry Market - Segmented by Type (Pure-play foundries, IDMs), End User (Consumer Electronics, Automotive Industrial), and Geography - Growth, Trends, and Forecast (2019 - 2024)

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Semiconductor Foundry Market Overview

The semiconductor foundry business is expected to witness steady growth in 2018, but that growth is expected to witness several challenges over the forecast period. Leading players in the market such as Intel, Global Foundries, Samsung, and TSMC are influencing the change in the market by migrating from the 16nm/14nm to the 10nm/7nm technology nodes. The rising demand for smartphones and tablets is a major factor impacting the market growth. These devices are increasingly being adopted in emerging markets, leading to increased demand for a semiconductor wafer.

Factors Driving the Semiconductor Foundry Market

According to applied energy systems, it is found that around 80% of semiconductor development projects are unable to meet their initial production schedules, often due to the foundry's overestimation of their ability to handle complex tasks. To predict productivity to ensure the right resources are deployed at the right time throughout the development lifecycle. Simultaneously, when it comes to semiconductor manufacturing, the use of analytics can yield accurate insight into equipment health and ensure that the systems are running at peak performance as per requirements.

Also, the current automotive outlook needs an unprecedented array of innovations that require substantial numbers of electronic devices. Sensors, cameras, and image processors are prerequisites for advanced driver assistance systems (ADAS) in conventional automobiles, to advanced power electronics used in electric vehicles (EVs) and advanced sensor technologies for autonomous "self-driving" vehicles. New ADAS safety features, such as automatic emergency braking systems (EBS), are attracting car buyers and insurance companies to avoid costly crashes. Also, governments are stepping in the US National Highway Traffic Safety Administration announced that it would require automatic emergency braking as a standard feature on new cars by 2022. The net effect of all this is the creation of strong demand for automotive electronics.

Semiconductor Foundry Market Applications

Communication Sector has a major market share in the semiconductor foundry market followed by automotive sector which has the fastest growth rate during the forecast period.

According to TSMC, The communications sector, particularly the Smartphone the segment posted a 6% and 3% growth in unit shipments for 2016 and 2017. Although the growth is slowing down, continuing transition to 4G/LTE and LTE-Advanced will bring about mid-single digit growth to the Smartphone market in 2018. Smartphones with increasing performance, longer battery life, and more intelligent features will continue to propel buying interests. The increasing popularity of low-end smartphones in emerging countries will also drive the growth of the sector.

Semiconductor Foundries are accelerating their efforts in automotive chip production in preparation for a surge in semiconductors used in advanced driver-assistance systems (ADAS), and autonomous driving. All of the major foundry vendors are scrambling to expand their process portfolios for automotive customers. The foundries are seeing a growing demand from automotive IC customers amid the push toward traditional cars with more connectivity features; ADAS, and electric/hybrid vehicles. Automotive also is attractive for foundries because many devices don’t require leading-edge processes, meaning a large number of vendors can participate.

Semiconductor Foundry Technological Specifications

The market analysis reveals that 28nm has the highest market share, while 10/7/5nm is going to have the fastest growth rate during the forecast period.

TSMC was the first foundry to offer the world's first 28nm General Purpose process technology in 2011 and has been adding more features ever since. The 28nm process technology supports a wide range of applications, including Central Processing Units (CPUs), graphics processors (GPUs), and high-speed networking chips, smartphones, tablets, application processors (APs), consumer electronics, home entertainment and the Internet of Things. The continuous substantial revenues for 28nm technology are being bolstered by the development of specialty wafer processes that can give low power consumption such as the ultra-low power ULP version from TSMC that will be used for IoT applications.

                                                               Semiconductor Foundry Market Revenue By type

10nm Fin Field-Effect Transistor (FinFET) process provides a competitive combination of performance, power, and delivery parameters. With a more aggressive geometric shrinkage, this process offers two times logic density than its 16nm predecessor, along with approximately 15% faster speed and 35% less power consumption.10nm FinFET supports various market segments, including, graphics processor, mobile, server, and networking. 7nm Fin Field-Effect Transistor (FinFET) process technology offers the industry's competitive logic density and sets the industry pace for 7nm process technology development by delivering 256 MB SRAM with double-digit yields in 2016; Risk production started in April 2017.

Semiconductor Foundry Market Segmentation – By Region

North America has the highest market share and the Asia Pacific has the fastest growth rate during the forecast period.

North America will be the major revenue contributor to the market by 2021 because fabless semiconductor companies are the major customers for semiconductor foundries. Fabless companies make exclusively chip designs and market them without a fabrication plant. The major fabless companies in the region are AMD, Apple, Broadcom, Qualcomm, NVIDIA, Marvell, and Xilinx. North America is playing a crucial role in advanced semiconductor system design and manufacturing. The semiconductor industry of China has been showing an upward trend from past ten years. The objective has been to become competitive with the Taiwan semiconductor industry. The strength of the sector comes from fabless companies. The fabless segment of China’s semiconductor industry accounted for revenues that exceeded USD 20 billion for the first time. China represents one-quarter of the global fabless industry.

Semiconductor Foundry Competitive Landscape

TSMC estimates that the worldwide semiconductor market in 2017 was US$434 billion in revenue, representing a strong 22% year-over-year growth, after a flat year in 2016. In the foundry segment of the semiconductor industry, total revenue was US$53 billion in 2017, up 7% year-over-year, close to the 8% growth in 2016.

                                                 Semiconductor Foundry Market Landscape

Major Players in Semiconductor Foundry Market

  • Taiwan Semiconductor Manufacturing Company Limited (TSMC)
  •  United Microelectronics Corporation (UMC)
  • Global Foundries
  •  Samsung Electronics
  •  SMIC
  •  Powerchip Technology5
  •  TowerJazz
  • Fujitsu Semiconductor
  • Vanguard International
  • Shanghai Huahong Grace Semiconductor

Semiconductor Foundry Market Summary




Semiconductor Foundry Market

Study Period

(2017 – 2023)

Market Size in 2017

USD 434 billion

Market Size in 2023

USD 85.62 billion

Growth Rate


Companies Covered

Taiwan Semiconductor Manufacturing Company Limited (TSMC), United Microelectronics Corporation (UMC), Global Foundries, Samsung Electronics, SMIC, PowerchipTechnology5, TowerJazz, Fujitsu Semiconductor.

Report Offerings

Semiconductor Foundry Market offers latest trends, growth prospects, industry competitiveness, major players, value/supply chain, regional market share, and forecast to 2023.

Reasons to Purchase Semiconductor Foundry Market Report

  • Current and future of semiconductor foundry market in the developed and emerging markets.
  •  Analyzing various perspectives of the market with the help of Porter’s five forces analysis.
  • The segments that are expected to dominate the Semiconductor Foundry Market.
  • Regions that are expected to witness the fastest growth of semiconductor foundry market during the forecast period.
  • Identify the latest developments, market shares and strategies of semiconductor foundry market employed by the major market players.
  • 3 months analyst support along with the Market Estimate sheet (in excel).

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1. Introduction

                1.1 Key Deliverables of the Semiconductor Foundry Market Study

                1.2 Semiconductor Foundry Market  Study Assumptions

                1.3 Semiconductor Foundry Market Definition

                1.4 Key Findings of the Semiconductor Foundry Market Study 

2. Research Approach and Methodology

3. Executive Summary

4. Semiconductor Foundry Market Dynamics

                4.1 Semiconductor Foundry Market Overview

                4.2 Factors Driving the Semiconductor Foundry Market

                4.3 Factors Restraining the Semiconductor Foundry Market

                4.4 Industry Attractiveness – Porter's Five Forces Analysis

                                4.4.1 Bargaining Power of Suppliers

                                4.4.2 Bargaining Power of Consumers

                                4.4.3 Threat of New Entrants

                                4.4.4 Threat of Substitute Products or Services

                                4.4.5 Competitive Rivalry among Existing Competitors

5.  Market Segmentation

                5.1 Semiconductor Foundry Market - By Type

                                5.1.1 Pure-play foundries

                                5.1.2 IDMs

                5.2 Semiconductor Foundry Market - By End User

                                5.2.1 Consumer Electronics

                                5.2.2 Industrial

                                5.2.3 Automotive

                                5.2.4 Communications

                                5.2.5 Others

                5.3 Semiconductor Foundry Market - By Geography

                                5.3.1 North America

                                5.3.2 Europe

                                5.3.3 Asia-Pacific

                                5.3.4 Latin America

                                5.3.5 Middle East & Africa

6.  Semiconductor Foundry Market Company Profiles

                6.1 Taiwan Semiconductor Manufacturing Company Limited (TSMC)

                6.2 United Microelectronics Corporation (UMC)

                6.3 Globalfoundries

                6.4 Samsung Electronics

                6.5 SMIC

                6.6 Powerchip Technology5

                6.7 TowerJazz

                6.8 Fujitsu Semiconductor

                6.9 Vanguard International

                6.10 Shanghai Huahong Grace Semiconductor

                *List not exhaustive

7. Semiconductor Foundry Market Investment Analysis

8. Outlook of the Semiconductor Foundry Market

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