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Development of the Global Semiconductor Foundry Industry, 2021-2022

  • Report

  • 20 Pages
  • August 2022
  • Region: Global
  • Market Intelligence & Consulting Institute (MIC)
  • ID: 5659591

Chip Oversupply Concerns Emerge Following Active Capacity Expansion Plans in China

This report provides an overview of the foundry industry in 2021 while examining strategies of major players; looks into factors and incidents impacting the industry such as the decline in demand for consumer electronics products in 2022, the Russia-Ukraine war, and the lockdown in China; identify future trends and prospects of the industry.

The shipment value of the global foundry industry reached US$110.1 billion in 2021, up 26% compared to 2020. The strong demand for semiconductor chips from the third quarter of 2020 led to a chip shortage. This boosted sales of leading foundries that make mainly logic chips in 2021.

Following the insufficient production capacity issue in 2021, wafer foundries around the world have operated at full load or overload while gearing up their capacity expansion plans to tap the increasing market demand. Most of the wafer foundries in 2021 claimed to open new fabs between 2023 and 2024. However, the shortage situation, as far as 2022 is concerned, appears to remain the same, according to the analyst.

Meanwhile, as China aims to achieve the target of domestically manufacturing 70% of its semiconductors under the "Made in China 2025" strategy, foundries in China have been actively expanding their production capacity over the years. Led by SMIC, major foundries in China have all set to increase their production capacity by more than 20% by the end of 2023 compared to the end of 2021. Although the increase in production capacity may help address strong domestic demand in China, it may also turn into an oversupply crisis in the semiconductor industry after 2023.

Following a downward revision in shipment value, global semiconductor shipment value is estimated to reach approximately US$600 billion in 2022 and witness single-digit year-on-year growth. Meanwhile, the analyst predicts that the shipment value of the Taiwanese semiconductor industry will maintain over NT$4 trillion (US$135.1 billion; US$1 = NT$29.6) and enjoy an approximately 15% year-on-year growth, higher than the global average. Established in 1987, the analyst is a division of III (Institute for Information Industry), a major government think tank, and one of the leading IT research institutes in Taiwan.

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Table of Contents

1. Development Overview
1.1 Global Foundry Industry Enjoys Growth in 2021
1.2 Global Top 10 Foundry Rankings 2021
1.3 Development of the Foundry Industry in 2021
2. Development of Leading Foundries
2.1 TSMC
2.2 Samsung
2.3 UMC
2.4 PSMC
2.5 Vanguard
2.6 SMIC
2.7 GlobalFoundries
3. Development of the Global Foundry Industry in 2022
3.1 Oversupply Concerns Emerging Following Active Capacity Expansion Plans
3.2 Intel - Entry to Foundry Business Changing Industry Landscape
4. Conclusion Appendix List of Companies
List of Tables
Table 1 Global Top 10 Foundry Rankings 2021
Table 2 Major Expansion Plans of Leading Foundries in 2021
Table 3 New Capacity Expansion Plans of Leading Foundry in China, 2022~2023
List of Figures
Figure 1 Changes in Gross Profit Margins of Leading Foundries, 2021
Figure 2 TSMC's Revenue by Application, 2020 vs. 2021
Figure 3 UMC's Revenue by Application, 2020 vs. 2021
Figure 4 PSMC's Revenue by Application, 2020 vs. 2021
Figure 5 Vanguard's Revenue by Application, 2020 vs. 2021
Figure 6 SMIC's Revenue by Application, 2020 vs. 2021
Figure 7 GlobalFoundries' Revenue by Application, 2020 3Q~2021 4Q
Figure 8 Illustration of Intel' Open Chiplet Platform

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Amazon
  • AMD
  • Apple
  • ARM
  • ASE
  • ASMC
  • AUO
  • Broadcom
  • DB HiTek
  • Denso
  • GlobalFoundries
  • Google
  • Huahong Group
  • Intel
  • Mediatek
  • Meta
  • Microsoft
  • Nexchip
  • Nvidia
  • Oppo
  • PSMC
  • Qualcomm
  • Samsung
  • SMIC
  • Sony
  • Tower
  • TSMC
  • UMC
  • Vanguard
  • Vivo
  • WIN Semiconductor
  • Xiaomi


Primary research with a holistic, cross-domain approach

The exhaustive primary research methods are central to the value that the analyst delivers. A combination of questionnaires and on-site visits to the major manufacturers provides a first view of the latest data and trends. Information is subsequently validated by interviews with the manufacturers' suppliers and customers, covering a holistic industry value chain. This process is backed up by a cross-domain team-based approach, creating an interlaced network across numerous interrelated components and system-level devices to ensure statistical integrity and provide in-depth insight.

Complementing primary research is a running database and secondary research of industry and market information. Dedicated research into the macro-environmental trends shaping the ICT industry also allows the analyst to forecast future development trends and generate foresight perspectives. With more than 20 years of experience and endeavors in research, the methods and methodologies include:


  • Component supplier interviews
  • System supplier interviews
  • User interviews
  • Channel interviews
  • IPO interviews
  • Focus groups
  • Consumer surveys
  • Production databases
  • Financial data
  • Custom databases


  • Technology forecasting and assessment
  • Product assessment and selection
  • Product life cycles
  • Added value analysis
  • Market trends
  • Scenario analysis
  • Competitor analysis