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The semiconductor foundry market size is forecast to increase by USD 50.08 billion between 2023 and 2028, accelerating at a CAGR of 7.47%. The market's growth is influenced by several factors, including the rising demand for IoT applications in various industries, the continuous evolution of 3D printing technology, and the increasing adoption of 14-nm/16-nm FinFET technology in semiconductor manufacturing. These trends reflect a broader shift towards advanced and efficient technologies, driven by the need for improved business operations and product innovation. The increasing integration of IoT devices into business processes underscores the importance of connectivity and data analytics. Similarly, the evolution of 3D printing technology is reshaping manufacturing processes, enabling faster prototyping and customization. The adoption of FinFET technology signifies a drive towards more energy-efficient and powerful semiconductor devices, meeting the demands of modern computing and communication systems.
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The market plays a crucial role in the semiconductor industry ecosystem, providing fabrication services for IC designs created by fabless semiconductor companies. The market is experiencing rapid growth, driven by the increasing demand for Internet of Things (IoT) devices, cloud computing solutions, and artificial intelligence (AI) technologies. Foundries are crucial for producing advanced semiconductor chips that enable logic and memory functions in these applications. With the rollout of 5G wireless technology, there's a heightened need for high-speed connectivity and data processing capabilities, further boosting the demand for semiconductor foundries. The automotive sector, in particular, is adopting these technologies for smart factories and connected vehicles, driving the need for specialized automotive chips. Semiconductor foundries play a critical role in developing these technologies, ensuring efficient process technology and reliable transistors for various applications.
The increasing demand for IoT in businesses is notably driving market growth. The market plays a pivotal role in the production of Integrated Circuits (ICs) for various electronic products. In the semiconductor industry ecosystem, fabless semiconductor companies design chips, while foundries manufacture them using Cutting-edge semiconductor technology such as CMOS (Complementary Metal-Oxide-Semiconductor). The demand for semiconductors is surging in sectors like retail, medical, automotive, and electronics.
Semiconductor foundries produce chips for smartphones, laptops, automotive electronics, IoT devices, and more. Pure-play foundries specialize in manufacturing high-performance semiconductors for wireless communication infrastructure, networking equipment, mobile devices, and the automobile industry. Advanced equipment like lithography machines, deposition tools, etching systems, and inspection instruments are used in the production process. The semiconductor industry caters to consumer electronics, automation, robotics, sensor technologies, microcontrollers, power management devices, IDMs, electric cars (EVs), and autonomous driving technologies. The market also serves sectors requiring healthcare-specific integrated circuits and power management components, including high-performance CPUs and electric powertrains. The advent of 5G technology is further fueling the growth of the semiconductor industry. Thus, such factors are expected to drive the global market during the forecast period.
The use of advanced analytics in semiconductor foundries is a key factor driving market growth. The market is witnessing significant growth as integrated circuits (ICs) manufacturers increasingly leverage big data to optimize operations. Fabless semiconductor companies and semiconductor foundries employ advanced CMOS (Complementary Metal-Oxide-Semiconductor) technology for chip design within the semiconductor industry ecosystem. This data is collected through sensors and other devices in fabs, enabling predictive maintenance, advanced process controls, and intelligent scheduling. The semiconductor industry caters to various sectors, including consumer electronics such as smartphones and laptops, automotive electronics, IoT devices, and wireless communication infrastructure for mobile devices and networking equipment. Pure-play foundries specialize in manufacturing high-performance semiconductors for these applications.
Cutting-edge semiconductor technology is essential for industries like automotive, where electric cars (EVs), autonomous driving technologies, and power management components are crucial. The market also supports the manufacturing of microcontrollers and power management devices for various applications. Moreover, semiconductor foundries play a vital role in the production of IDMs (Integrated Device Manufacturers) for healthcare-specific integrated circuits, 5G technology, and high-performance CPUs. Advanced equipment like lithography machines, deposition tools, etching systems, and inspection instruments are used to manufacture these components. In summary, the market is a critical component of the semiconductor industry ecosystem, providing cutting-edge technology for various sectors, including consumer electronics, automotive, IoT, and wireless communication infrastructure. Advanced analytics enable more informed decisions, simplifying the manufacturing process and improving overall efficiency. Hence, such factors are driving the market during the forecast period.
The high fluctuations in semiconductor demand due to the cyclic nature of the industry is a significant challenge restricting market growth. The market is significantly influenced by the semiconductor industry's volatile nature, which is characterized by its cyclical growth and decline in demand for integrated circuits (ICs). This industry ecosystem encompasses various sectors, including fabless semiconductor companies, chip design houses, and integrated device manufacturers (IDMs). The demand for semiconductors is driven by various electronic products, such as smartphones, laptops, automotive electronics, IoT devices, and telecommunication equipment. Cutting-edge semiconductor technology, including CMOS (Complementary Metal-Oxide-Semiconductor) and high-performance semiconductors, is essential for these electronic products.
Pure-play foundries provide the necessary manufacturing services for these advanced semiconductors. The semiconductor industry's volatility is influenced by factors such as excess production capacity, obsolete products, and rapid erosion in IC prices. The market caters to various industries, including consumer electronics, automotive, wireless communication infrastructure, networking equipment, and automation, robotics, and sensor technologies. Applications include microcontrollers, power management devices, and IDMs in electric cars (EVs), autonomous driving technologies, tablets, wearables, smart home appliances, and healthcare-specific integrated circuits. Advanced equipment, such as lithography machines, deposition tools, etching systems, and inspection instruments, are crucial for manufacturing these high-performance semiconductors. The market is further impacted by emerging technologies, such as 5G and power management components, high-performance CPUs, and electric powertrains. Hence, such factors are hindering the market during the forecast period.
The market share growth by the pure play foundries segment is significant during the forecast period. The market specializes in the production of Integrated Circuits (ICs) for fabless semiconductor companies, design houses, and other clients. Pure-play foundries focus on semiconductor fabrication services using Cutting-edge semiconductor technology, such as Complementary Metal-Oxide-Semiconductor (CMOS). They cater to a wide range of industries, including consumer electronics producing Smartphones, Laptops, and Tablets, automotive electronics, telecommunications, industrial, and healthcare. Diversification in client base mitigates risks and strengthens foundries' resilience to market volatility.
The pure play foundries segment was the largest segment and was valued at USD 71.66 billion in 2018. High economies of scale contribute to growth. The semiconductor industry ecosystem includes electronic products, smartphones, laptops, automotive electronics, IoT devices, and more. Pure-play foundries provide high-performance semiconductors for wireless communication infrastructure, networking equipment, mobile devices, automobile industry, automation, robotics, sensor technologies, microcontrollers, power management devices, and IDMs. Applications include electric cars (EVs), autonomous driving technologies, wearables, smart home appliances, healthcare-specific integrated circuits, and advanced equipment like lithography machines, deposition tools, etching systems, and inspection instruments. The market also serves industries adopting 5G and power management components, high-performance CPUs, and electric powertrains. Hence, such factors are fuelling the growth of this segment during the forecast period.
North America is estimated to contribute 40% to the growth of the global market during the forecast period. The North American market holds a prominent position in the global industry, driven by leading companies specializing in semiconductor designs such as Qualcomm, NVIDIA, and Intel. These firms require semiconductor foundry services to manufacture advanced chips for various applications, including in-vehicle infotainment systems, augmented reality (AR), and virtual reality (VR). The region's significant demand is further fueled by industries like automotive, aerospace, IoT, and telecommunications, which rely on energy-efficient chips, control circuits, and specialty foundries for their electronic devices. Geopolitical tensions and technological advancements, such as EUV lithography, quantum processors, and quantum memory, continue to shape the market. Additionally, emerging technologies like 5G networks, AI applications, AI chips, cellular IoT connections, gallium nitride (GaN), and silicon semiconductors contribute to the market's growth. Industries like healthcare, consumer electronics, industrial, and semiconductor technology also benefit from semiconductor foundry services. Such factors impact the growth of the regional market during the forecast period.
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The Market is fragmented in nature. Some significant players include DB HiTek, Fujitsu Ltd., GCS Holdings Inc., GlobalFoundaries US Inc., Hua Hong Semiconductor Ltd., MACOM Technology Solutions Holdings Inc.
Analog Devices Inc: The company offers semiconductor foundry such as Attenuators, Beamformers, Phase Shifters, I Q Modulators and Demodulators, RF Amplifiers, 24GHz Radar Transceiver Chipsets, and others.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
DB HiTek, Fujitsu Ltd., GCS Holdings Inc., Hua Hong Semiconductor Ltd., MACOM Technology Solutions Inc., MagnaChip Semiconductor Corp., NXP Semiconductors NV, ON Semiconductor Corp., Powerchip Semiconductor Manufacturing Corp., Robert Bosch GmbH, ROHM Co. Ltd., Samsung Electronics Co. Ltd., Semiconductor Manufacturing International Corp., STMicroelectronics International NV, Taiwan Semiconductor Manufacturing Co. Ltd., Toshiba Corp., Tower Semiconductor Ltd., United Microelectronics Corp., Vanguard International Semiconductor Corp., WIN Semiconductors Corp., and X FAB Silicon Foundries SE
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
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The market is witnessing significant growth, driven by the increasing demand for advanced technologies such as autonomous vehicles, IoT systems, and data processing and analytics. Chip foundry companies play a crucial role in developing chips for these applications, ensuring efficient manufacturing process technology and reliable transistors in Defense and Military. The market is also influenced by the need for computer and networking solutions, connected devices, Transistor, and optical component technologies. Moreover, with the growing demand for earphones and smartphone app, semiconductor foundries are focusing on developing innovative solutions to meet these needs. Streamlined regulations and advancements in mobile telecommunications networks, Telecom further contribute to market growth.
Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.47% |
Market growth 2024-2028 |
USD 50.08 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.95 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 40% |
Key countries |
US, Taiwan, China, South Korea, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Analog Devices Inc., DB HiTek, Fujitsu Ltd., GCS Holdings Inc., Hua Hong Semiconductor Ltd., MACOM Technology Solutions Inc., MagnaChip Semiconductor Corp., NXP Semiconductors NV, ON Semiconductor Corp., Powerchip Semiconductor Manufacturing Corp., Robert Bosch GmbH, ROHM Co. Ltd., Samsung Electronics Co. Ltd., Semiconductor Manufacturing International Corp., STMicroelectronics International NV, Taiwan Semiconductor Manufacturing Co. Ltd., Toshiba Corp., Tower Semiconductor Ltd., United Microelectronics Corp., Vanguard International Semiconductor Corp., WIN Semiconductors Corp., and X FAB Silicon Foundries SE |
Market dynamics |
Parent market analysis, market growth analysis, market research and growth, market growth and forecasting, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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