Semiconductor Foundry Market, By Technology Node (7nm, 10nm, 14nm, 22nm, 28nm, 40nm, 65nm, 90nm), By Application (Consumer Electronics, Communication, Automotive, Industrial), By Wafer Size (200mm, 300mm, 450mm) & Forecast, 2024 – 2032

Semiconductor Foundry Market Size

Semiconductor Foundry Market was valued at USD 120 billion in 2023 and is estimated to grow at a CAGR of over 8.8% between 2024 and 2032. The increased demand for semiconductor chips in various industries drives growth in this market by necessitating expanded manufacturing capacity to meet market demands.

Industries such as automotive, consumer electronics, healthcare, and industrial automation increasingly rely on semiconductor solutions for advanced functionalities, leading to heightened production requirements and opportunities for semiconductor foundries to fulfill these needs and capitalize on market growth. For instance, in December 2022, Samsung Electronics Ltd. announced plans to step up chip production capacity at its largest semiconductor fabrication plant in South Korea in 2023.
 

The burgeoning automotive and industrial sectors serve as pivotal drivers propelling the semiconductor foundry market growth. The demand for semiconductor chips is increasing with automobiles incorporating sophisticated systems such as advanced driver assistance and Electric Vehicle (EV) components. Similarly, in industrial domains, the integration of robotics, automation, and smart manufacturing necessitates high-performance chips for heightened efficiency and connectivity. The need for specialized semiconductor solutions intensifies as these sectors continue to expand and embrace increasingly advanced technologies, fostering substantial growth opportunities in the market.
 

Technological obsolescence and rapid innovation cycles present formidable challenges in the semiconductor foundry industry. The increasing pace of technological advancement often renders existing technologies obsolete, making it challenging for foundries to keep up with the evolving demands. Moreover, the short lifecycle of semiconductor products necessitates frequent upgrades and innovations, leading to increased R&D costs. This perpetual cycle of innovation poses a risk of investing in outdated technologies, potentially hindering profitability, and competitiveness within the market landscape.
 

Semiconductor Foundry Market Trends

Foundries are advancing semiconductor manufacturing by refining process nodes, such as 7nm and 5nm, to create chips with superior performance, lower power usage, and enhanced integration. Smaller nodes allow for tighter packing of transistors, boosting computing power while minimizing energy consumption. This trend drives innovations in electronics, facilitating the development of more efficient and powerful devices, from smartphones to data centers, thereby meeting the demands of modern computing applications.
 

The demand for semiconductor chips is increasing, particularly for applications such as ADAS, electrification, factory automation, and IoT devices, as the automotive and industrial sectors embrace technological advancements. In response, semiconductor foundries are developing specialized solutions customized to meet the specific needs and standards of these industries. This tailored approach ensures that chips are optimized for performance, efficiency, and reliability in critical automotive and industrial applications.
 

Semiconductor Foundry Market Analysis

Based on application, the market is segmented into consumer electronics, communication, automotive, industrial, and others. The consumer electronics segment is expected to reach over USD 4 billion by 2032.
 

• The consumer electronics market is characterized by rapid innovation cycles, with manufacturers constantly releasing new products with upgraded specifications. This necessitates the production of cutting-edge semiconductor chips to power these devices.
   
• The introduction of emerging technologies, such as Augmented Reality (AR), Virtual Reality (VR), and 5G connectivity, in consumer electronics is increasing the demand for specialized semiconductor solutions capable of handling the computational and connectivity requirements of these technologies.
   

Based on wafer size, the market is segmented into 200mm, 300mm, and 450mm. The 450mm segment is expected to grow at a CAGR of over 12% during the forecast period.
 

• Larger wafers, such as the 450mm size, allow semiconductor foundries to increase their production capacity by accommodating more chips per wafer. This scalability addresses the rising demand for semiconductor chips across industries, ensuring that foundries can meet market needs efficiently while optimizing their manufacturing processes for higher output and lower costs.
   
• 450mm wafers enable the fabrication of semiconductor chips with smaller process nodes and higher transistor densities. This advancement allows for the development of more powerful and energy-efficient chips by packing more transistors into a smaller area, enhancing performance while reducing power consumption.
   

North America dominated the global semiconductor foundry market in 2023 with over 35% of the total revenue share. The region is a hub for innovations and technology, attracting significant investments in semiconductor R&D. Additionally, there is a strong demand for advanced semiconductor solutions in various industries such as automotive, aerospace, and healthcare. North America has a robust ecosystem of semiconductor companies, foundries, and technology suppliers, fostering collaboration and driving market growth. Favorable government policies and incentives further stimulate investments and expansion in the semiconductor industry.
 

Semiconductor Foundry Market Share

TSMC Limited and Samsung Electronics Co. Ltd (Samsung Foundry) held a significant share of over 15% in the market in 2023. TSMC Limited, also known as Taiwan Semiconductor Manufacturing Company, is a leading semiconductor foundry providing advanced wafer fabrication services. It specializes in manufacturing Integrated Circuits (ICs) for a wide range of applications including consumer electronics, automotive, industrial, and telecommunications. TSMC offers cutting-edge process technologies, such as 7nm, 5nm, and beyond, enabling customers to develop high-performance, energy-efficient semiconductor chips for various end-use applications.

Samsung Electronics Co. Ltd. is a leading player in the semiconductor foundry industry. It offers comprehensive semiconductor manufacturing services including the fabrication of advanced logic and memory chips on cutting-edge process nodes. The Samsung Foundry division specializes in delivering customized solutions tailored to the requirements of diverse industries, ranging from consumer electronics and automotive to networking and artificial intelligence applications.
 

Semiconductor Foundry Market Companies

The major players operating in the market are:

• 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 December 2022, Taiwan Semiconductor Manufacturing Co (TSMC) increased its planned investment over three times in Arizona, U.S., to USD 40 billion from a previously announced USD 12 billion. The Arizona plants decided to produce 3-nm and 4-nm chips for iPhone processors.
   
• In November 2022, Hua Hong Semiconductor Ltd. received regulatory approval for a USD 2.5 billion Initial Public Offering (IPO) in Shanghai. The planned IPO strategy came as China's chip companies geared up for steeper competition with the U.S. due to geopolitical tensions. Hua Hong planned to invest the money in a new fabrication plant in the eastern city of Wuxi, with construction set to begin in 2023 and an eventual production capacity of 83,000 wafers per month.
   

The semiconductor foundry market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) from 2018 to 2032, 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
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• 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