Semiconductor Foundry Market - By Technology Node, By Application, By Wafer Size & By Region - Forecast 2025 - 2034

Semiconductor Foundry Market Size

The global semiconductor foundry market was valued at USD 136.3 billion in 2024 and is anticipated to grow at a CAGR of 9.1% to reach USD 321.1 billion by 2034. The growth of the market is attributed to factors such as advanced packaging technologies and surging demand for AI applications.
 

The surging demand for AI applications is a major key driver for market as these advanced AI driven application relies on high computing technologies. According to IBEF, the AI market in India is expected to grow at a CAGR of 20.2% and is forecasted to reach USD 7.8 billion by 2025. With such rapid growth of AI adoption in cloud computing, autonomous vehicles, healthcare, and fintech industries, there has been an increasing demand for high-performance semiconductor chips. Heavy usage in workloads like deep learning, natural language processing, and computer vision involves specialized hardware like GPUs, TPUs, and AI accelerators, compelling the semiconductor foundries to invest in advanced process nodes like 5nm, 3nm, and below.
 

Semiconductor foundries should make investments in leading-edge process nodes (5nm, 3nm, and below) as the demand surges for these applications in the areas of AI-driven cloud computing, autonomous vehicles, and fintech. Capacity expansion for GPUs, TPUs, and AI accelerators will be critical for high-performance, energy-efficient chips.
 

The growth of advanced packaging technology is further contributing towards the growth of semiconductor foundry market. According to NIST report, the CHIPS National Advanced Packaging Manufacturing Program (NAPMP) in US has contributed USD 1.4 billion of funding towards the development of domestic advanced packaging infrastructure. Advanced packaging techniques, including 2.5D and 3D integration, chiplets, and FOWLP are enabling the introduction of high-performance semiconductor chips which are required for the AI, Data Center, and HPC domains. With advancing AI workloads, the single monolithic structure of traditional designs is facing issues in fulfilling the requirements from the perspective of performance and efficiency in power utilization. Advanced Packaging overcomes those challenges by the improvement of the interconnects, power minimization, and computing performance augmentation, thus a demand for services in foundry is observed. As the firms continue to demand high power semiconductor chips, the semiconductor foundries are investing in these packaging solutions, which is supporting the growth of market.
 

Semiconductor foundries need to invest in advanced packaging technologies, such as 2.5D/3D integration and chiplets, in order to meet the further increase of AI and HPC. With initiatives like NAPMP funding, enhancement of the interconnects and power efficiency will enhance performance, assist growth, and enhance foundry competitiveness in the market.
 

The transformation in automotive industry such as adoption of ADAS features and the growing demand for electric vehicles further pushes the growth of semiconductors foundry market. These semiconductor chips ensure real-time data processing, connectivity, and are essential for functioning of vehicles. Additionally, the integration of IoT devices and infotainment system in modern vehicle further fuels the growing demand for semiconductor foundry.
 

Semiconductor foundries should focus on the manufacturing of advanced automotive chips to power ADAS, EVs, and IoT-enabled vehicles.
 

Semiconductor Foundry Market Trends

• The adoption of generative AI accelerator chips is one of the key trends in global market. These chips assists in processing of complex AI tasks by increasing the speed and efficiency and supports the growing demand for AI driven applications. The AI models are becoming complex, semiconductor foundries are investing in the production of advanced chips to provide solutions to the growing demand, further fuelling the growth of the semiconductor foundry industry.
   
• The shift of the semiconductor industry from monolithic chip designs toward chiplet-based architectures is rising. It involves packaging multiple smaller dies in a single package using advanced interconnect technologies. It is driving both foundry and advanced packaging services demand, as companies seek solutions that improve chip performance and manage costs and yield challenges.
   
• One of the key trend in semiconductor foundry is development of advanced 2nm node technology. These advanced nodes will provide high transistor density, which significantly increase performance and reduce power consumption while supporting the growing demand for high performance applications, AI, 5G, etc. These nodes are critical for next generation devices.
   

Semiconductor Foundry Market Analysis

The market based on wafer size is bifurcated into 200mm, 300mm, and 450mm.
 

• The 450mm wafer size is expected to be the fastest-growing segment with a CAGR of 10.5% during the forecast period. These sizes of wafers grow because of the increase in semiconductor devices, which need advanced chips for processing data at a faster rate. As the demand for IoT devices is constantly growing, firms are starting to adopt 450mm wafer size as it increases production efficiency and improves scalability.
   
• The 300mm wafer size accounted for USD 63.3 billion in 2024. Advanced semiconductor manufacturing trends toward heterogeneous integration, 3D stacking, and chiplet architectures, to obtain economies of scale for high-volume wafer production is driving the demand of 300mm wafers. With increasing adoption of system-in-package (SiP) and fan-out wafer-level packaging (FOWLP), demand for 300mm wafers continues to grow.
   
• The 200mm wafer size is predicted to surpass USD 81.3 billion by 2034. Growing demand for MEMS and RF components used in 5G infrastructure, smartphones, and automotive radar systems is witnessed in the 200mm wafer market. MEMS sensors are widely used in consumer electronics, medical devices, and industrial applications, which are compelling foundries to increase their 200mm capacity.  
   

The semiconductor foundry market based on application is categorized into consumer electronics, communications, automotive, industrial, and others.
 

• The consumer electronics segment dominated the market in 2024 and held 46.8% of the total market share. The increasing production of IoT devices is driving significant demand for the semiconductor in consumer electronic devices. Moreover, the continuous deployment of AI in these IoT devices, further drives demand for advanced semiconductor foundries.
   
• The communications segment is expected to grow at a CAGR of over 10.9% during the forecast period. Rapid deployment of data centers and 5G networks are major drivers for the growth of the market. High telecom traffic with a need for enhanced connectivity and a robust network infrastructure in the telecom sector increased the demand for high density advanced chip driving the semiconductor foundries market.
   
• The automotive segment in the semiconductor foundry market accounted for 13.6% of the total market share in 2024. Modern vehicles, especially electric vehicles (EVs) and ADAS-equipped vehicles, require advanced semiconductor components such as microcontrollers, power management ICs, sensors, and communication chips. Automakers increasingly add more digital and electronic systems to their cars, the demand for semiconductor foundry services in the production of these components is rising at an unprecedented rate.
   
• The industrial segment in the semiconductor foundry industry is projected to exceed USD 19 billion by 2034. Solutions found through semiconductor-based solutions involving microcontrollers (MCUs), sensors, and AI-powered chips in robotics, machine vision, and predictive maintenance systems. Foundries are scaling up production to meet the rising industrial-grade semiconductors.  
   

The semiconductor foundry market by technology node is bifurcated into 7nm, 10nm, 14nm, 22nm, 28nm, 40nm, 65nm, 90nm, and others.
 

• The 7nm technology node accounted for USD 29.4 billion in 2024. The 7nm process node is utilized in applications that aim for high computing power, such as artificial intelligence and machine learning or high-performance computing. AI accelerators, GPUs, and custom AI chips depend on 7nm for their best performance, power efficiency, and transistor density. This demand continues to drive investment in increasing 7nm manufacturing capacity.
   
• The 10nm technology is predicted to grow significantly with a CAGR of over 9.7% during the forecast period. The 10nm node continues to be useful for the mass production of high-performance application processors for premium and mid-range smartphones, tablets, and laptops. The semiconductor foundries continue producing processors at this node for producers looking for alternatives to expensive leading-edge nodes.
   
• The 14nm technology is growing significantly and is anticipated to surpass USD 48 billion by 2034. The automotive and industrial sectors require semiconductor solutions that are highly reliable with long lifecycles. The growing applications in fields such as MCUs, power management ICs, and sensors in electric vehicles, autonomous driving systems, factory automation, and robotics, drives the 14nm technology nodes demand.
   
• The 22nm technology is expected to grow at a CAGR of over 7.8% during the forecast period. The 22nm node is increasingly adopted in analog, mixed-signal and RF ICs that are crucial in wireless communication 5G infrastructure and sensor applications. Highly efficient integration of digital and analog components makes it preferred choice for many semiconductor manufacturers.
   
• The 28nm technology in the semiconductor foundry market accounted for USD 14.9 billion in 2024. The growth of 28nm technology is associated with the implementation of these chips in high-end OLED displays and its capability of 4G networking. This node technology offers wireless connections such as WiFi and bluetooth, and are heavily used across automotive, industrial, and consumer electronics industries, where performance is critical, and budget is limited. 
   
• The 40nm technology is predicted to surpass USD 22.2 billion by 2034. The growth of this technology is attributed to factors such as established manufacturing processes, which ensure consistent supply of these nodes. In addition, adoption of 40nm technology aimed for high-performance applications such as CPUs, graphics processor, game console and hard drives further promotes the growth of these nodes.
   
• The 65nm technology is expected to grow at a CAGR of over 5.9% during the forecast period. IoT applications ranging from smart meters, home automation, and wearables require more power-efficient as well as cheaper semiconductor solutions. Therefore, the demand for 65nm-node IoT MCUs and connectivity chips is expected to grow.
   
• The 90nm technology accounted for USD 5.5 billion in 2024. This technology caters to various niche applications such as radio and video cards and ensures support for these older devices. These low-power 90nm nodes offer cost-effective solutions for certain applications where the latest nodes are not required.
   

North America held 37.4% of the total market share in the global semiconductor foundry market in 2024. The growth of this region is driven by the increased focus in advanced chip design and early adoption of quantum computing semiconductor technologies that depends on these advanced semiconductors for optimized and enhanced processing. The growth of the market is further promoted by the strong presence of semiconductor companies in the region.
 

• The U.S. dominated the semiconductor foundry market and accounted for USD 38.2 billion in 2024. The increasing demand for high-performance computing chips, advanced process nodes for AI accelerators, and strategic investments in domestic semiconductor manufacturing are key drivers of market growth. Increasing government investment and initiatives, such as CHIPS Act to promote domestic semiconductor foundries capable of producing advanced semiconductors is further propelling the growth of the semiconductor foundry industry in the region.
   
• The Canada semiconductor foundry market is projected to grow to USD 27 billion by 2034. The growth of the Canadian market is driven by increasing requirements for IoT device and sophisticated applications of semiconductors like AI integrated systems and 5G network telecommunications. Moreover, major player's focus on advanced packaging technology, also aids in boosting the demand for market.
   

Europe accounted for 19% of the global semiconductor foundry market share in 2024. There is a growing demand for advanced semiconductor chips to manage batteries, ADAS, and connectivity in EVs with the growing adoption of automotive semiconductors. Additionally, expansion in industrial automation, resulting in the adoption of Gen AI chips and IoT smart factories in major European market is also contributing to growing demand for the market.
 

• The Germany semiconductor foundry market is expected to reach USD 19.5 billion by 2034. The growth of the market in Germany is attributed to the shift in the automotive industry, with the integration of AI-driven chips for electric vehicles and ADAS features. Moreover, the government’s investments in smart manufacturing infrastructure are further pushing the demand for the market.
   
• The UK market is projected to expand at a CAGR of 9.7% during the forecast period. There is a strong shift in defense-related semiconductor development, the UK government continues to implement the application of AI in military, radar, and secure communications systems driving market growth. Moreover, the growing investment from telecom firms towards 5g infrastructure, to ensure reliable networking is supporting the growth of semiconductor foundry in the region.
   
• The France semiconductor foundry market is expected to grow at a CAGR of over 7.6% from 2025 to 2034. The growth of the market is supported by the presence of leading automotive and aerospace semiconductor design centers in France. Additionally, several government investments and initiatives like Europe Chips Acts for domestic production of advanced semiconductors is further promoting the growth of the market.
   
• The semiconductor foundry industry in Italy is estimated to reach USD 3.3 billion by 2034. The rising demand for electric vehicles is a key growth driver for market in Italy, as it uses specialized automotive semiconductor chips to improve performance. Additionally, the growth of the semiconductor foundry is propelled by the advancement in healthcare technology that relies on specialized chips for medical devices.
   
• The Spain semiconductor foundry market is expected to reach to USD 2.7 billion by 2034. The government’s growing investment towards domestic production for advanced semiconductor solutions is a key growth driver for semiconductor foundry in the region. Additionally, the rapid deployment of the 5G network further pushes the demand for advanced semiconductor foundry.
   

The Asia-Pacific region accounted for 30.3% total market share in the global semiconductor foundry market in 2024. The market is growing in this region as new advanced manufacturing centres are being developed capable of producing highly capable chips necessary for processing of AI, IoT, and high-performance computing. Also, the consumer electronics industry demands advanced semiconductor solution for smartphones, tablets, and smart home gadgets, propelling growth in this region.
 

• The semiconductor foundry market in China is predicted to increase with a CAGR of over 11.7% during the forecast period. Growing government initiatives to replace semiconductor imports with domestic production along with the growing demand for AI-integrated consumer electronics such as mobile phones and cloud-enabled devices is pushing the demand for semiconductor foundry.
   
• Japan is predicted to capture 19.6% of the APAC market by 2034. Japan has a strong focus on industrial automation, the automotive industry, and AI robotics, which demand large amounts of semiconductor products. In addition, the government’s growing investments in the production of high-performance computing chips are propelling the growth of semiconductor foundry in the region.
   
• The semiconductor foundry market in South Korea is expected to grow with a 8.6% CAGR by 2034. South Korea holds a strong position in the memory and logic chip production. Prominent players in market like Samsung and SK Hynix, are heavily investing in the growth of next-generation memory and logic chip production. These efforts ensure South Korea to maintain its position in the global market.
   
• India in semiconductor foundry market is predicted to grow with a CAGR growth of 12.7% by 2034. India is one of the largest consumers of smartphones and laptops and other electronic devices in the world. Increasing consumer demand for producing chips locally within the country in consumer electronics boosts the demand for indigenous semiconductor foundries. The "Make in India" initiative has further accelerated this trend.
   
• The ANZ Semiconductor foundry market accounted for USD 6 billion in 2024.The ANZ region is witnessing market growth in semiconductors due to the increased spending in 5G technologies. The adoption of AI in automation in the various industry such as mining and agricultural is also pushing the demand for semiconductor chips in this region.
   

Latin America accounted for 7.7% of total market share in global semiconductor foundry market in 2024. Latin America's industrial sector is increasingly adopting automation and IoT-based solutions. Semiconductor foundries are critical to providing the microchips needed for smart factories, industrial sensors, and connectivity solutions. As manufacturing industries modernize, demand for semiconductors produced at various technology nodes is expected to grow.
 

• The Brazil semiconductor foundry market is expected to achieve a CAGR of 7.4% by 2034. The growth in Brazil is attributed to adoption of advanced automotive semiconductors, especially in the electric vehicle (EV) space and AI vehicle systems. Additionally, the investment from Brazilian government towards development of telecom infrastructure and fiber optic networks is generating significant demand for advanced semiconductor solutions, which is propelling the growth in this region.
   
• The Mexico semiconductor foundry market is projected to grow with a CAGR of over 6.5% by 2034. The growth is primarily driven by Mexico’s electronics manufacturing industry. Global manufacturers are shifting their focus towards local semiconductor production plants to cater the growing demand of automotive & consumer electronics industry. As the country is a hub of electronic production, the market will continue to benefit from the government’s growing investments.
   

The Middle East and Africa regions held a share of 5.5% in the global semiconductor foundry market in 2024. The emerging smart city initiatives along with the ongoing digitalization and growth of AI & cloud computing in the region is driving the demand for market.
 

• The UAE market accounted for USD 2.3 billion in 2024. The increasing demand for low latency, high-performance chips in fintech industrial sectors is significantly supporting the semiconductor market in the region. The government’s initiatives to develop smart cities and transform the economy digitally is further driving the growth of the market.
   
• The Saudi Arabia semiconductor foundry market is anticipated to increase at a CAGR of 2.7% during the forecast period. Technology diversification under Vision 2030 includes an emphasis on semiconductor research and development (R&D) and expanding local chip manufacturing. In addition, the country's growing digital infrastructure, particularly in AI, IoT, and cybersecurity, is generating strong demand for semiconductors to power these emerging technologies and systems.
   
• The South Africa semiconductor foundry market is estimated to be worth USD 1.3 billion in 2034. Major players in South Africa are focusing on the adoption of renewable energy, especially solar and wind. The increased demand for power-efficient semiconductor components due to the growth in the applications of power management ICs and microcontrollers for storage of energy and grid infrastructure is expected to spur the demand for semiconductor foundry capabilities.
   

Semiconductor Foundry Market Share

The market is highly competitive featuring established global leaders as well as various regional startups. Global Foundries Inc., Intel Corporation, Samsung Electronics Co. Ltd, SMIC, and Tower Semiconductor Ltd are major players in the global semiconductor market, collectively holding significant market share of over 20%. Key market players are investing in advanced semiconductor technologies including extreme ultraviolet (EUV) lithography and 2-nanometer (2nm) process nodes along with advanced chip architecture. The next-generation semiconductor solutions deliver increased processing capabilities combined with energy efficiency which ensures future-proof chip designs to satisfy the increasing demand for AI-driven applications, 5G communications, and IoT devices.
 

The integration of artificial intelligence, including machine learning, into smart manufacturing systems and Industrial IoT networks is driving the demand for advanced semiconductor foundries that are capable of manufacturing such complex chips with an uninterruptible supply. AI-powered smart manufacturing can also optimize the production process while predicting equipment failure and automating maintenance, resulting in increased efficiency and reduced costs. Government regulations intended to boost domestic chip production, such as the U.S. CHIPS and Science Act, further develop advanced semiconductor foundries. These efforts address the growing demand for high-performance semiconductor solutions in the evolving digital landscape while also strengthening companies' positions in the market.
 

TSMC Limited, a market leader in semiconductor foundry market offers a wide range of semiconductor solutions. With early adoption in semiconductor technology, the firm excels in cutting-edge manufacturing and has partnered with tech giants such as Apple and Nvidea to gain competitive advantage. Its strategy focuses on continuous innovation in process technology, capacity expansion, and strategic partnerships. 
 

Samsung Electronics Co. Ltd. maintains a strong presence in the market. It has the expertise of integrated device manufacturing. The company invests heavily in the future generation semiconductor technologies, such as GAA transistors and 3nm nodes, to compete with TSMC. For instance, January 2024, Samsung announced the mass production of its 2nd-generation 3nm process technology, promising more power efficiency and performance.
 

Semiconductor Foundry Market Companies

The semiconductor foundry industry features several prominent players, including:

• Globalfoundries Inc.
• Intel Corporation
• Samsung Electronics Co. Ltd (Samsung Foundry)
• SMIC
• Tower Semiconductor Ltd.
• TSMC Limited
• United Microelectronics Corporation (UMC)
   

Semiconductor Foundry Industry News

• In January 2025, Polar semiconductor  has signed a technology licensing agreement with Tower Semiconductor that enables the domestic production of Tower's robust TS18 Power Management process. Under this agreement, Polar will license Tower's wide range of 180nm technologies, becoming the only U.S.-based foundry that can offer high-voltage power BCD semiconductor wafer production to end users in Aerospace & Defense and commercial markets.
   
• In September 2024, US military partnered with India to establish the country’s first semiconductor plant in Uttar Pradesh. This plant will supply semiconductor chips to US and Indian armed forces and aims to enhance supply and drive innovation towards emerging technologies.
   

The semiconductor foundry market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) from 2021 to 2034, for the following segments:

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Market, By Technology Node

• 7nm
• 10nm
• 14nm
• 22nm
• 28nm
• 40nm
• 65nm
• 90nm
• Others

Market, By Application

• Consumer electronics
• Communication
• Automotive
• Industrial
• Others

Market, By Wafer Size 

• 200mm
• 300mm
• 450mm

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany      
  • Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA