Segments - Semiconductor Foundry Market by Technology Node (10/7/5 nm, 16/14 nm, 20 nm, 28 nm, 45/40 nm, 65 nm, 130 nm, and Others), Foundry Type (IDMs and Pure Play Foundry), Application (Aerospace, HPC, Automotive, Consumer Electronics & Communication, Industrial, and Others), and Region (Asia Pacific, North America, Europe, Latin America, and Middle East & Africa) Forecasts, 2023-2031
The global semiconductor foundry market size was valued at USD 133.33 Billion in 2022 and is anticipated to reach USD 252.22 Billion by 2031, expanding at a CAGR of 7.34% during the forecast period, 2023-2031.
A semiconductor foundry is a manufacturing facility that produces integrated circuits (ICs). A semiconductor foundry, also known as a fab and fabrication facility, is a factory that uses photolithography to make devices such as integrated circuits. ICs are produced at numerous technological nodes for a variety of applications including 10nm, 7nm, and 20nm.
To eliminate dust and reduce vibrations, semiconductor foundries employ a clean room with controlled temperature and humidity. Semiconductor Foundries assist corporations in introducing new items that are in high demand such as the design and fabrication of semiconductors required in new products.
Increasing demand for 5G networking and rising demand for high-performance computing goods are major factors driving the expansion of the market. Rapid expansion of consumer electronic items such as smartphones such as tablets, PCs, and game consoles is estimated to drive the semiconductor foundry market growth. Growing global need for connected cars, electric, and self-driving cars are key factors, expected to propel the semiconductor foundry market expansion. Increasing demand for advanced ICs from the automotive industry and a rise in the use of IoT-enabled devices are all projected to boost demand for semiconductor foundries.
Lack of a strong supply chain for the semiconductor foundry and the scarcity of critical IT components globally are key challenges that can hinder the market during the projected timeline.
Growing smart city projects and increasing acceptance of smart home devices are expected to give abundant growth opportunities for the market in the coming years.
The market report includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.
Attributes |
Details |
Report Title |
Semiconductor Foundry Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast |
Base Year |
2022 |
Historic Data |
2016 & 2021 |
Forecast Period |
2023–2031 |
Segmentation |
Technology Node (10/7/5 nm, 16/14 nm, 20 nm, 28 nm, 45/40 nm, 65 nm, 130 nm, and Others), Foundry Type (IDMs and Pure Play Foundry), and Application (Aerospace, HPC, Automotive, Consumer Electronics & Communication, Industrial, and Others) |
Regional Scope |
Asia Pacific, North America, Europe, Latin America, and Middle East & Africa |
Report Coverage |
Market scope, analysis, share, competitive analysis, growth facts, restraints, opportunities, and revenue forecast |
Key Players Covered in the Report |
Taiwan Semiconductor Manufacturing Company Limited; Fujitsu; SAMSUNG; X-FAB Silicon Foundries SE; SMIC; Powerchip Semiconductor Manufacturing Corporation; United Microelectronics Corporation.; DB HITEK; GlobalFoundries; and Tower Semiconductor |
Based on technology nodes, the semiconductor foundry market is fragmented into 10/7/5 nm, 16/14 nm, 20 nm, 28 nm, 45/40 nm, 65 nm, 130 nm, and others. The 130nm segment is projected to hold a significant market share.
The cost structure of 130 nm technology nodes is appealing and their extended life are key drivers of the segment's growth. The growing global need for electric, connected cars and self-driving cars present the main factors propelling the segment's expansion.
On the basis of foundry types, the market is bifurcated into IDMs and pure play foundry. The pure play foundry segment is anticipated to account for a substantial share of the market owing to rising demand for advanced processors used in data center computers and networking and new 5G smartphones.
Moreover, wide use of ICs in other high-growth market applications such as self-driving vehicles, robotics, driver-assist automation, Machine Learning (ML), Artificial Intelligence (AI), and image recognition systems are expected to fuel the segment growth.
In terms of application, the semiconductor foundry market is segregated into aerospace, HPC, automotive, consumer electronics & communication, industrial, and others. The automotive segment is expected to register a healthy growth rate in the coming years. Semiconductors are essential components of vehicle electronics such as infotainment systems, ECUs, and sensors.
Furthermore, the rise of electric and self-driving automobiles has increased the demand for semiconductors due to rising demand for safer personal mobility. Moreover, increasing development of driverless vehicles and innovative technology such as the advancement of Advanced Driver Assistance Systems (ADAS) help in the expansion of autonomous vehicles, resulting in segment growth.
In terms of region, the market is categorized as Asia Pacific, North America, Europe, Latin America, and Middle East & Africa. Asia Pacific is expected to dominate the market during the forecast period as the region emerged as the largest destination for semiconductor foundries in the world, with leading global businesses such as Samsung Electronics, TSMC, and others.
Taiwan, Japan, South Korea, and China are major countries that each have a sizable market share. China has set a lofty goal for its semiconductor industry. Japan intends to entice foreign firms with financial incentives to secure its chip supplies and remedy the worldwide shortfall. Japan imports a large portion of its semiconductors from abroad to establish a strong domestic supply chain for this technology.
Key players in the global semiconductor foundry market are Taiwan Semiconductor Manufacturing Company Limited; Fujitsu; SAMSUNG; X-FAB Silicon Foundries SE; SMIC; Powerchip Semiconductor Manufacturing Corporation; United Microelectronics Corporation.; DB HITEK; GlobalFoundries; and Tower Semiconductor.
These players have widely engaged in several market development activities including collaborations, agreements, mergers & acquisitions, production capacity expansion, new product launches, and partnerships to increase their market share.