South Korea Semiconductor Foundry Market Size and Share - Growth Analysis Report and Forecast Trends (2026-2035)

The South Korea Semiconductor Foundry Market attained a value of USD 23.10 Billion in 2025 and is projected to expand at a CAGR of around 7.9% through 2035. With Samsung Foundry advancing 2 nm gate-all-around process technology to capture AI accelerator and high-performance computing demand, surging AI-driven orders for advanced node logic foundry services supporting cloud and data centre chip design, government-backed K-Semiconductor Belt investment exceeding USD 450 billion driving domestic capacity expansion, and growing automotive and 5G semiconductor demand creating new foundry service requirements across legacy and advanced nodes, the market is set to achieve USD 42.30 Billion by 2035.

Key Market Trends and Insights

• Gyeonggi Province dominated the South Korea Semiconductor Foundry Market in 2025, accounting for the largest regional share of foundry revenue, driven by the concentration of Samsung Electronics' Hwaseong and Pyeongtaek fabrication complexes, SK Hynix's Icheon and Yongin facilities, and the country's most advanced semiconductor R&D ecosystem within the Gyeonggi cluster.
• By Technology Node, the 10/7/5 nm and below segment led the market with approximately 34.5% share in 2024 and is projected to witness the highest CAGR over the forecast period, supported by Samsung Foundry's 2 nm GAA production ramp, growing AI accelerator orders from global hyperscalers, and EUV lithography-enabled volume production of next-generation logic chips.
• By Application, the AI/HPC segment is expected to register the fastest CAGR over the 2026-2035 forecast period, propelled by surging demand for AI training and inference chips requiring Samsung Foundry's leading-edge 3 nm and 2 nm process capabilities, and SK Hynix's HBM memory integration with advanced packaging services.

Market Size and Forecast

• Market Size in 2025: USD 23.10 Billion
• Projected Market Size in 2035: USD 42.30 Billion
• CAGR from 2026-2035: 7.9%
• Fastest-Growing Regional Market: Gyeonggi Province (Yongin Semiconductor Cluster)

The South Korea Semiconductor Foundry Market encompasses dedicated wafer fabrication services, integrated device manufacturer (IDM) foundry operations, and fab-lite hybrid models that manufacture integrated circuits and chipsets designed by fabless and system design companies. South Korea's semiconductor foundry sector is anchored by Samsung Foundry - the world's second-largest pure-play and IDM-hybrid foundry with an estimated 13% global market share - alongside DB HiTek and MagnaChip for specialty analog and power semiconductor foundry services. The market is valued at USD 23.10 Billion in 2025, driven by surging global demand for AI accelerators, data centre logic chips, advanced memory-logic integration, and automotive semiconductor content. South Korea's foundry competitiveness is underpinned by government commitment through the K-Semiconductor Strategy, which targets attracting USD 450 billion in private investment by 2030 to create the world's largest and most advanced semiconductor manufacturing cluster.

The South Korea semiconductor foundry market growth is being propelled by Samsung Foundry's landmark technology milestones: the initiation of 3 nm gate-all-around (GAA) production in 2022 - the world's first - and the planned 2 nm GAA production ramp in 2025, positioning Samsung as the preferred second-source foundry for global hyperscalers and fabless chip designers seeking technology node diversity beyond TSMC. In July 2025, Samsung secured a landmark USD 16.5 billion silicon order from Tesla for automotive AI chips, validating its 3 nm node competitiveness in automotive-grade AI semiconductor applications. Meanwhile, SK Hynix's USD 6.8 billion investment in a new 300 mm memory fab in Yongin, approved in July 2024, expands South Korea's capacity for next-generation HBM and DRAM products that integrate foundry-style logic processes with memory arrays - reflecting the convergence of foundry and memory manufacturing modalities accelerating across South Korea's semiconductor ecosystem.

Key Takeaways

• Key Takeaway 1: Gyeonggi Province commands the dominant share of the South Korea Semiconductor Foundry Market, housing Samsung Foundry's Hwaseong and Pyeongtaek advanced fabs and SK Hynix's expanding Icheon and Yongin manufacturing complexes.
• Key Takeaway 2: The 10/7/5 nm and below technology node segment leads market revenue at approximately 34.5% share in 2024, with Samsung's 2 nm GAA production ramp and AI chip demand driving the highest CAGR through 2035.
• Key Takeaway 3: The market is projected to grow at a CAGR of 7.9% during 2026-2035, reaching USD 42.30 Billion by 2035, supported by AI/HPC foundry demand, government K-Semiconductor Belt investment, and automotive chip partnerships.