A semiconductor foundry is a specialized manufacturing facility that creates integrated circuits (ICs) or chips on behalf of other companies. These foundries are integral components of the semiconductor industry as they provide the production capabilities for firms that design chips but lack their own fabrication facilities. This outsourcing model allows for increased flexibility, cost-effectiveness, and access to state-of-the-art technology for chip design companies.
The significance of semiconductor foundries for the future of the semiconductor industry cannot be overstated. Firstly, they play a pivotal role in propelling innovation and technological advancement. Foundries allocate substantial resources to research and development, pushing the boundaries of semiconductor technology and resulting in continual enhancements in process nodes. As the size of nodes decreases, more transistors can be integrated onto a chip, leading to heightened performance, energy efficiency, and smaller physical dimensions. This technological progress is essential for meeting the demands of emerging applications in fields like artificial intelligence, 5G telecommunications, and autonomous vehicles.
Furthermore, foundries enable a wide range of industries to tap into advanced semiconductor technology. Numerous companies, particularly smaller ones or those with specialized focuses, may lack the means to establish and maintain their own fabrication facilities. Semiconductor foundries present a cost-effective solution by providing manufacturing services, allowing these companies to concentrate on chip design and application development. This accessibility fuels innovation across diverse sectors, spanning from consumer electronics to healthcare, automotive, and industrial automation.
Finally, foundries bolster the resilience of the global supply chain. The semiconductor industry has encountered challenges in its supply chain, including shortages and disruptions. By dispersing manufacturing capabilities across multiple foundries around the world, the industry can mitigate risks tied to geopolitical tensions, natural disasters, and unforeseen events. This ensures a more dependable and stable supply of semiconductors, which is crucial for the ongoing growth and innovation in today's technology-driven landscape. In summary, semiconductor foundries stand at the forefront of the semiconductor industry's future, propelling innovation, enabling a wide array of applications, and enhancing the stability of the global supply chain.
The semiconductor foundry market analysis is expected to expand significantly during the forecast period owing to increase in utilization of consumer electronics, and surge in internet of things (IoT) technology. In addition, during the forecast period, the semiconductor foundry market is anticipated to benefit from increase in investments in semiconductor wafer fabrication equipment and materials. On the contrary, the complexities in manufacturing associated with semiconductor foundrys restrains semiconductor foundry market growth during the forecast period.
The semiconductor foundry market is segmented on the basis of node size, application, and region. By node size, it is divided into 180nm, 130nm, 90nm, 65nm, 45/40nm, 32/28nm, 22/20nm, 16/14nm, 10/7nm, 7/5nm, and 5nm. In 2022, the 7/5nm segment dominated the market, and it is expected to acquire a major market share by 2032. By application, it is segmented into telecommunication, defense and military, industrial, consumer electronics, automotive, and others. In 2022, the consumer electronics segment dominated the market, and it is expected to acquire a major market share by 2032.
On the basis of region, the semiconductor foundry Market trends are analyzed across North America (the U.S., Canada, and Mexico), Europe (the UK, Germany, France, and rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
Competitive analysis and profiles of the major global semiconductor foundry market players that have been provided in the report include Globalfoundries Inc., Hua Hong Semiconductor Limited, Intel Corporation, Micron Technology, Inc., Samsung Electronics Co. Ltd, Semiconductor Manufacturing International Corporation (SMIC), Taiwan Semiconductor Manufacturing Company Limited, Texas Instruments Incorporated, United Microelectronics Corporation, and X-FAB Silicon Foundries SE. The key strategies adopted by the major players of the Semiconductor foundry market are product launch and business expansion.
The significance of semiconductor foundries for the future of the semiconductor industry cannot be overstated. Firstly, they play a pivotal role in propelling innovation and technological advancement. Foundries allocate substantial resources to research and development, pushing the boundaries of semiconductor technology and resulting in continual enhancements in process nodes. As the size of nodes decreases, more transistors can be integrated onto a chip, leading to heightened performance, energy efficiency, and smaller physical dimensions. This technological progress is essential for meeting the demands of emerging applications in fields like artificial intelligence, 5G telecommunications, and autonomous vehicles.
Furthermore, foundries enable a wide range of industries to tap into advanced semiconductor technology. Numerous companies, particularly smaller ones or those with specialized focuses, may lack the means to establish and maintain their own fabrication facilities. Semiconductor foundries present a cost-effective solution by providing manufacturing services, allowing these companies to concentrate on chip design and application development. This accessibility fuels innovation across diverse sectors, spanning from consumer electronics to healthcare, automotive, and industrial automation.
Finally, foundries bolster the resilience of the global supply chain. The semiconductor industry has encountered challenges in its supply chain, including shortages and disruptions. By dispersing manufacturing capabilities across multiple foundries around the world, the industry can mitigate risks tied to geopolitical tensions, natural disasters, and unforeseen events. This ensures a more dependable and stable supply of semiconductors, which is crucial for the ongoing growth and innovation in today's technology-driven landscape. In summary, semiconductor foundries stand at the forefront of the semiconductor industry's future, propelling innovation, enabling a wide array of applications, and enhancing the stability of the global supply chain.
The semiconductor foundry market analysis is expected to expand significantly during the forecast period owing to increase in utilization of consumer electronics, and surge in internet of things (IoT) technology. In addition, during the forecast period, the semiconductor foundry market is anticipated to benefit from increase in investments in semiconductor wafer fabrication equipment and materials. On the contrary, the complexities in manufacturing associated with semiconductor foundrys restrains semiconductor foundry market growth during the forecast period.
The semiconductor foundry market is segmented on the basis of node size, application, and region. By node size, it is divided into 180nm, 130nm, 90nm, 65nm, 45/40nm, 32/28nm, 22/20nm, 16/14nm, 10/7nm, 7/5nm, and 5nm. In 2022, the 7/5nm segment dominated the market, and it is expected to acquire a major market share by 2032. By application, it is segmented into telecommunication, defense and military, industrial, consumer electronics, automotive, and others. In 2022, the consumer electronics segment dominated the market, and it is expected to acquire a major market share by 2032.
On the basis of region, the semiconductor foundry Market trends are analyzed across North America (the U.S., Canada, and Mexico), Europe (the UK, Germany, France, and rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
Competitive analysis and profiles of the major global semiconductor foundry market players that have been provided in the report include Globalfoundries Inc., Hua Hong Semiconductor Limited, Intel Corporation, Micron Technology, Inc., Samsung Electronics Co. Ltd, Semiconductor Manufacturing International Corporation (SMIC), Taiwan Semiconductor Manufacturing Company Limited, Texas Instruments Incorporated, United Microelectronics Corporation, and X-FAB Silicon Foundries SE. The key strategies adopted by the major players of the Semiconductor foundry market are product launch and business expansion.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the semiconductor foundry market analysis from 2022 to 2032 to identify the prevailing semiconductor foundry market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the semiconductor foundry market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global semiconductor foundry market trends, key players, market segments, application areas, and market growth strategies.
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Key Market Segments
By Node Size
- 180nm
- 130nm
- 90nm
- 65nm
- 45/40nm
- 32/28nm
- 22/20nm
- 16/14nm
- 10/7nm
- 7/5nm
- 5nm
By Applications
- Telecommunication
- Defense and Military
- Industrial
- Consumer Electronics
- Automotive
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- France
- Germany
- UK
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
- Key Market Players
- GLOBALFOUNDRIES Inc.
- Intel Corporation
- Samsung Electronics Co. Ltd
- TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED
- Texas Instruments Incorporated
- United Microelectronics Corporation
- Micron Technology, Inc.
- Hua Hong Semiconductor Limited
- X-FAB Silicon Foundries SE
- Semiconductor Manufacturing International Corporation (SMIC)
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: SEMICONDUCTOR FOUNDRY MARKET, BY NODE SIZE
CHAPTER 5: SEMICONDUCTOR FOUNDRY MARKET, BY APPLICATIONS
CHAPTER 6: SEMICONDUCTOR FOUNDRY MARKET, BY REGION
CHAPTER 7: COMPETITIVE LANDSCAPE
CHAPTER 8: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, the semiconductor foundry market was valued at $106.94 billion in 2022, and is estimated to reach $231.5 billion by 2032, growing at a CAGR of 8.1% from 2023 to 2032.The semiconductor foundry market is likely to experience a significant growth rate of 8.1% from 2023-2032 owing to increase in use of semiconductor foundry in applications such as consumer electronics, automotive, and telecommunication.
A semiconductor foundry, also referred to as a semiconductor fabrication plant or fab, is a specialized facility that produces integrated circuits (ICs) and other electronic components on a large scale. These foundries hold a crucial position in the semiconductor industry as they provide the necessary infrastructure and expertise for the mass production of semiconductor devices. They cater to a wide range of clients, including fabless semiconductor firms, integrated device manufacturers (IDMs), and original equipment manufacturers (OEMs).
Fabless semiconductor companies, which primarily focus on IC design but lack the resources or facilities for in-house manufacturing, heavily rely on semiconductor foundries. These companies contract out the fabrication process to the foundries, allowing them to focus on innovation and design. This collaborative approach enables a diverse array of applications, covering everything from microprocessors and memory chips to specialized components utilized in communication, automotive, medical, consumer electronics, and industrial sectors. The foundry model promotes innovation and competition within the semiconductor industry by empowering smaller companies with groundbreaking concepts to bring their designs to market without the substantial capital investment required for in-house manufacturing facilities.
Integrated device manufacturers (IDMs), who traditionally handled both the design and production of semiconductor components, have increasingly turned to foundries. This transition enables them to concentrate on design and research and development efforts, while benefiting from the foundry's specialized manufacturing capabilities to achieve economies of scale. Additionally, original equipment manufacturers (OEMs) across various industries depend on semiconductor foundries to provide the essential components necessary for their products. Whether it's in smartphones, laptops, automotive control systems, or medical devices, semiconductor foundries play a pivotal role in facilitating the technological advancements that underlie our modern world. Their role in the electronics production ecosystem is indispensable, ensuring a consistent supply of high-quality semiconductor components for a diverse range of applications.
The growth of the semiconductor foundry market is primarily driven by factors such as escalating demand for advanced electronic devices across various industries, including consumer electronics, automotive, and telecommunications. This surge in demand stems from the increasing integration of semiconductor components in a wide range of products. Additionally, technological advancements and the continuous pursuit of miniaturization and power efficiency are compelling semiconductor foundries to invest in cutting-edge fabrication processes. Moreover, the growing trend towards outsourcing semiconductor production by fabless companies and integrated device manufacturers (IDMs) further propels the market, allowing these companies to focus on innovation and design, while leveraging the specialized manufacturing capabilities of foundries. These factors collectively contribute to the robust expansion of the semiconductor foundry market.
Major players in the semiconductor foundry sector are well-positioned for significant expansion, propelled by a range of positive factors. These encompass growing requests for cutting-edge electronic gadgets, broader utilization across sectors such as automotive and IoT, and the rise of transformative technologies like 5G and AI. Furthermore, the rising intricacy of semiconductor production processes is driving increased reliance on expert foundries for outsourcing. This evolving environment presents a bright outlook for the top companies in the market.
The semiconductor foundry market is segmented on the basis of node size, application, and region. By node size, it is divided into 180nm, 130nm, 90nm, 65nm, 45/40nm, 32/28nm, 22/20nm, 16/14nm, 10/7nm, 7/5nm, and 5nm. In 2022, the 7/5nm segment dominated the market, and it is expected to acquire a major market share by 2032. By application, it is segmented into telecommunication, defense and military, industrial, consumer electronics, automotive, and others. In 2022, the consumer electronics segment dominated the market, and it is expected to acquire a major market share by 2032.
On the basis of region, the semiconductor foundry market trends are analyzed across North America (the U.S., Canada, and Mexico), Europe (the UK, Germany, France, and rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
Competitive analysis and profiles of the major global semiconductor foundry market players that have been provided in the report Globalfoundries Inc., Hua Hong Semiconductor Limited, Intel Corporation, Micron Technology, Inc., Samsung Electronics Co. Ltd, Semiconductor Manufacturing International Corporation (SMIC), Taiwan Semiconductor Manufacturing Company Limited, Texas Instruments Incorporated, United Microelectronics Corporation, and X-FAB Silicon Foundries SE. For instance in February 2023, Texas Instruments announced its plan on to build a second 300-millimeter semiconductor wafer fabrication plant (or fab) in Lehi, Utah. The new fab will be located next to the company’s existing 300-mm semiconductor wafer fab and will operate as a single fab once completed.
Key Market Insights
The global semiconductor foundry market was valued at $106.9 billion in 2022, and is projected to reach $231.5 billion by 2032, registering a CAGR of 8.1% from 2023 to 2032.The 7/5nm segment was the highest revenue contributor to the market, with $28.7 billion in 2022.
The consumer electronics segment was the highest revenue contributor to the market, with $33.9 billion in 2022.
The telecommunication segment is estimated to reach $56.0 billion by 2032, at a significant CAGR of 6.8% during the forecast period.
North America was the highest revenue contributor, accounting for $46.5 billion in 2022, and is estimated to reach $99.5 billion by 2032, with a CAGR of 7.9%.
Asia-Pacific is estimated to reach $94.4 billion by 2032, at a significant CAGR of 8.2%.
Companies Mentioned
- GLOBALFOUNDRIES Inc.
- Intel Corporation
- Samsung Electronics Co. Ltd
- TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED
- Texas Instruments Incorporated
- United Microelectronics Corporation
- Micron Technology, Inc.
- Hua Hong Semiconductor Limited
- X-FAB Silicon Foundries SE
- Semiconductor Manufacturing International Corporation (SMIC)
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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