Semiconductor Foundry Market 2023 – 2030 by Industry (Automotive, Aerospace, Industrial, Consumer Electronics Healthcare, Pure IDMS), Foundry (Pure Play Foundry, IDMs), Technology (10/7/5 nm, 16/14 nm, 20 nm) - Partner & Customer Ecosystem (Product Services, Proposition & Key Features) Competitive Index & Regional Footprints by MarketDigits
Industry : Electronics & Semiconductors | Pages : 182 Pages | Published On : Jul 2023
The semiconductor foundry market witnessed a valuation of USD 52.5 billion in 2021. With a projected growth from USD 56.28 billion in 2023 to USD 91.56 billion by 2030, the market is expected to achieve a compound annual growth rate (CAGR) of 7.20% during the forecast period (2023-2030). The market growth is primarily driven by the increasing demand for 5G wireless and Internet of Things solutions, as well as government funding aimed at advancing semiconductor technology. These factors play a significant role in fostering the expansion of the semiconductor foundry market.
Semiconductor Foundry Market Trends
The growing demand for 5G wireless and Internet of Things (IoT) solutions has become a significant focus for semiconductor development in the coming years. This entails the integration of sensors and software into internet-connected devices to collect and analyze data. For example, smart factories can optimize operations by monitoring machine activities and reducing costs. Smart homes, enabled by IoT devices, allow users to remotely manage lighting, appliances, and security aspects such as window status or smoke detection.
The transition from 4G to 5G has brought about faster, more reliable, and lower latency mobile telecommunications networks. High-speed connections are crucial for all internet-connected devices to benefit from the capabilities of 5G. Manufacturers have already started developing 5G smartphones, which will contribute to the increasing demand for semiconductors and drive the growth of the semiconductor foundry market. According to Statista, the global semiconductor industry was valued at USD 422.34 billion, and the market reached USD 618 billion in 2022. This rising semiconductor market presents lucrative opportunities for the semiconductor foundry market in the forecast period.
However, the rapid growth of the semiconductor foundry market is influenced by other factors as well. The automotive sector, in particular, is driving the industry as semiconductor foundries focus on producing chips for autonomous driving applications. Semiconductor foundry services find utility across various industries such as telecommunications, computer and networking, consumer electronics, and automotive.
The demand for efficient semiconductor foundry services is also spurred by the increasing popularity of mobile devices with internet connectivity and multimedia capabilities. IoT systems, operating in industries like electronics, retail, medical, and automotive, utilize data analysis to connect and enable decision-making for various devices. Additionally, government support from several countries to advance semiconductor technology contributes to the growth of the semiconductor foundry market. For example, in 2021, South Korean President Moon Jae-in launched a national semiconductor industrial policy aimed at establishing the country's leadership in the chip industry by 2030. This includes tax credits for R&D and manufacturing, government investments, streamlined regulations, and improved infrastructure. The proposed tax advantages for Korean chip companies could amount to USD 55-USD 65 billion over the next three years, as estimated by the Semiconductor Industry Association (SIA).
Semiconductor Foundry Industry Insights
The segmentation of the semiconductor foundry market based on industry includes Automotive, Aerospace, Industrial, Consumer Electronics, Healthcare, and Pure IDMS. Among these segments, the Automotive semiconductor foundry segment dominates the market revenue. This is primarily attributed to the increasing demand for safer personal transportation and the growth of electric and autonomous vehicles, which drives the need for semiconductors. Semiconductors play a crucial role in automotive vehicles, as electronic control units, infotainment systems, and sensors heavily rely on semiconductor components.
• In February 2022, STMicroelectronics introduced new automotive microcontrollers (MCUs) designed for centralized electrical architectures (zonal and domain) and electric vehicles. The Stellar E MCUs from STMicroelectronics integrate high-speed control-loop processing, specifically developed for software-defined next-generation electric vehicles. This platform enables the creation of a new value chain for electric vehicles, leveraging the advanced capabilities of the Stellar E devices.
Semiconductor Foundry Regional Insights
The market analysis provides insights into the Semiconductor Foundry market across various regions, including North America, Europe, Asia-Pacific, and the Rest of the World. In North America, the Semiconductor Foundry market recorded a valuation of USD 24.04 billion in 2021 and is projected to experience significant growth with a high CAGR during the study period. This growth can be attributed to factors such as the expanding consumer electronics industry, increasing demand for connected devices, growing adoption of Internet of Things (IoT) technologies, and rising demand for electronic vehicles and autonomous vehicles.
The market report focuses on several key countries, including the United States, Canada, Germany, France, United Kingdom, Italy, Spain, China, Japan, India,
In Europe, the semiconductor foundry market holds the second-largest market share, driven by factors such as the presence of advanced technology, a thriving automotive industry, increasing government investments in smart city projects and connected car infrastructure development, and the growing consumer electronics industry. Among European countries, the semiconductor foundry market in Germany has the largest market share, while the UK market is experiencing the fastest growth.
The Asia-Pacific region is expected to exhibit the fastest compound annual growth rate (CAGR) in the semiconductor foundry market from 2022 to 2030. This growth is attributed to factors such as the rising adoption of IoT devices, increasing demand for electronic vehicles, and growing government investments in smart city projects that support market expansion in the region. Among Asian countries, the semiconductor foundry market in China holds the largest market share, while the Indian market is experiencing the highest growth rate in the Asia-Pacific region.
Semiconductor Foundry Key Market Players & Competitive Insights
Major players in the semiconductor foundry market are making substantial investments in research and development (R&D) to expand their product lines and drive further growth in the market. These market participants are also implementing various strategic initiatives to increase their global presence. Key market developments include new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaborations with other organizations. In an increasingly competitive and growing market environment, competitors in the semiconductor foundry industry must offer cost-effective products to expand their market share and remain competitive.
Manufacturing locally to reduce operating costs is one of the primary business strategies adopted by manufacturers in the semiconductor foundry industry. In recent years, the semiconductor foundry market has witnessed significant benefits from this approach. Key players in the market, such as Taiwan Semiconductor Manufacturing Company (TSMC) Limited and Vanguard International Semiconductor Corporation, are investing in research and development activities to meet the growing market demand.
• In March 2022, DENSO Corporation announced a USD 0.35 billion investment in Japan Advanced Semiconductor Manufacturing, Inc. (JASM), a majority-owned manufacturing division of TSMC in Kumamoto Prefecture, Japan. This investment will result in DENSO owning more than 10% of the ownership in JASM.
• In January 2022, VIS acquired the Fab L3B building and its facilities, enabling them to enhance their manufacturing capacities. These acquisitions are expected to increase the company's monthly manufacturing capacity of 8-inch wafers to approximately 40,000, allowing them to meet the growing demand for semiconductors in the short and long term.
Key Companies in the semiconductor foundry market includes
• Taiwan Semiconductor Manufacturing Company (TSMC) Limited (Taiwan)
• Foundries (US)
• United Microelectronics Corporation (UMC) (Taiwan)
• Semiconductor Manufacturing International Corporation (SMIC) (China)
• Samsung Group (South Korea)
• Samsung Group (South Korea)
• Fujitsu Semiconductor Limited (Japan)
• Fujitsu Semiconductor Limited (Japan)
• STMicroelectronics NV (Switzerland)
• TowerJazz (Tower Semiconductor Limited) (Israel)
• Vanguard International Semiconductor Corporation (Taiwan)
• X-FAB Silicon Foundries (Germany)
• Magnachip (South Korea)
• United Microelectronics Corporation (Taiwan)
• Powerchip Semiconductor Manufacturing Corp. (Taiwan), among others
Semiconductor Foundry Industry Developments
In February 2022, Intel announced the establishment of a USD 1 billion fund aimed at supporting startups and established companies engaged in developing innovative technologies for the foundry ecosystem. This initiative is part of Intel's IDM 2.0 strategy, which aims to meet the increasing demand for advanced semiconductor manufacturing worldwide. Through its Intel Foundry Services (IFS), Intel is well-positioned to offer state-of-the-art packaging and process technology, dedicated capacity, and a wide range of unique intellectual properties (IPs), including major instruction set architectures (ISAs).
In January 2022, DB HiTek announced its acquisition of RF SOI (silicon-on-insulator) and RF HRS (high resistivity substrate) technologies based on 130nm/110nm technology. This strategic move is intended to expand DB HiTek's RF front-end business. The RF front-end plays a crucial role in wireless communication, handling the transmission and reception of data between IT devices (Tx and Rx). It is utilized in various communication contexts, such as mobile devices and the Internet of Things (IoT). The RF front-end typically includes components such as antenna tuners, low noise amplifiers, and power amplifiers (PA).
In May 2022, the international semiconductor consortium ISMC announced a $3 billion investment to build a chip manufacturing facility in Karnataka state, India. The facility will focus on 65nm analogue semiconductor fabrication. The ISMC has requested 150 acres of land in the Kochanahalli Industrial area of Mysuru. Subject to approval by the Indian government, this project will be one of India's first and largest semiconductor fabrication facilities under the Central Government's Indian Semiconductor Mission. It is expected to create approximately 1,500 direct jobs and 10,000 indirect jobs, while also supporting the growth of the local semiconductor ecosystem industry with significant multiplier effects.
Semiconductor Foundry Market Segmentation:
Semiconductor Foundry Technology Outlook
• 10/7/5 nm
• 16/14 nm
• 20 nm
Semiconductor Foundry Industry Outlook
• Consumer Electronics Healthcare
• Pure IDMS
Semiconductor Foundry Foundry Outlook
• Pure Play Foundry
Semiconductor Foundry Regional Outlook
• North America
o Rest of Europe
o South Korea
o Rest of Asia-Pacific
• Rest of the World
o Middle East
o Latin America
Table and Figures
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