Semiconductor Foundry Market Research Report—Global Forecast till 2030

Semiconductor Foundry Market Research Report Information By Technology (10/7/5 nm, 16/14 nm, 20 nm), By Industry (Automotive, Aerospace, Industrial, Consumer Electronics Healthcare, Pure IDMS), By Foundry (Pure Play Foundry, IDMs), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) – Market Forecast Till 2030.

ID: MRFR/SEM/9266-HCR | | Region: Global | 100 Pages         

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Global Semiconductor Foundry Market Overview:


Semiconductor Foundry Market Size was valued at USD 52.5 billion in 2021. The semiconductor foundry market industry is projected to grow from USD 56.28 Billion in 2022 to USD 91.56 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 7.20% during the forecast period (2022 - 2030). Rising demand for 5G wireless and Internet of Things solutions and government funding for the advancement of semiconductor technology are the key market drivers enhancing the market growth.
Semiconductor Foundry Market Overview
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Semiconductor Foundry Market Trends



  • Rising demand for 5G wireless and Internet of Things solutions


A significant growth focus for semiconductors in the forthcoming years will be internet-connected devices that utilize sensors and software to gather and analyze data. For instance, smart factories may help you keep an eye on the activities on the shop floor and ensure that every machine is running as efficiently as possible, freeing up space on the floor and assisting companies in reducing spending. A smartphone app can be used to manage the lights and appliances in a user's house due to the emergence of smart homes. Users of IoT devices would be able to remotely check on security aspects of their homes, such if windows are unlocked or leaking smoke.


Mobile telecommunications networks nowadays operate at significantly higher speeds, reliability, and latency due to the switch to 4G and the upgrading to 5G. For all Internet-connected devices to receive the data they require from 5G, high-speed connections are required. For a future market, 5G phones have been developed by manufacturers of mobile phones. The market for semiconductor foundries is predicted to expand as a result of the increased demand for semiconductors brought on by these new, smart phones. According to Statista, the semiconductor industry market is valued 422.34 billion and in 2022 the number reached USD 618 billion. As a result, the rising semiconductor market is anticipated to create the lucrative opportunity for the market during forecast period.


However, the semiconductor foundry market is growing quickly. The semiconductor foundry industry is being driven by this factor as semiconductor foundries step up their efforts to produce automotive chips in expectation of an increase in semiconductors used in autonomous driving. Semiconductor foundry services will be advantageous to numerous sectors. Some of the major industries that require semiconductor foundry services are telecom, computer and networking, consumer electronics, and automotive.


The demand for effective semiconductor foundry services is rising in response to the growing popularity of mobile, network-capable gadgets with internet access and multimedia capabilities. IoT systems analyse data to help users connect various items to the internet and make decisions. They therefore operate in a range of industries, such as electronics, retail, and the medical and automotive sectors. The Semiconductor Foundry Market is also being driven by government support from a number of countries for the improvement of semiconductor technology. For instance, in 2021, the President Moon Jae-in of South Korea launched a new national semiconductor industrial policy aiming at ensuring the country's leadership in the chip industry by 2030 according to the data of Semiconductor Industry Association, which is driving the growth for the market over the forecasted period. The plan includes up to 50% tax credits for R&D and 16% for manufacturing, as well as USD 886 million in long-term financing, USD 1.3 billion in government R&D investments, streamlined regulations, and improved infrastructure. According to SIA, the proposed tax advantages for Korean chip companies might total USD 55-USD 65 billion over the next three years.


Semiconductor Foundry Market Segment Insights:


Semiconductor Foundry Industry Insights


The semiconductor foundry market segmentation, based on Industry, includes Automotive, Aerospace, Industrial, Consumer Electronics Healthcare, and Pure IDMS. The Automotive semiconductor foundry segment held the majority share in the semiconductor foundry market revenue. This is primarily owing to the rising demand for safer personal transportation and growth in electric and autonomous vehicles that driving the need for semiconductors. In automotive vehicles electronic auto equipment including electronic control units, infotainment systems, and sensors are mostly made of semiconductors.


Feb 2022: New automotive microcontrollers (MCUs) for centralised (zonal and domain) electrical architectures and electric vehicles were launched by STMicroelectronics. High-speed control-loop processing is integrated into the new Stellar E MCUs from STMicroelectronics, which are made for software-defined electric vehicles of the next generation. This platform makes it possible for a brand-new value chain for EVs with the new Stellar E devices.


Semiconductor Foundry Insights


The semiconductor foundry market segmentation, based on Foundry, includes Pure Play Foundry, IDMs. The Pure Play Foundry segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is due to the increasing consumer electronics that anticipated to support the market growth during forecast period.


Figure 2: Semiconductor Foundry Market, by Foundry, 2021 & 2030 (USD Billion)Semiconductor Foundry Market, by Foundry, 2021 & 2030
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Semiconductor Foundry Regional Insights


By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America Semiconductor Foundry market accounted for USD 24.04 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. This is attributed to the growing rising consumer electronics industry, rising demand for connected devices, rising adoption of Internet of Things, and growing demand in electronic vehicles and autonomous vehicles.


Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.


Figure 3: SEMICONDUCTOR FOUNDRY MARKET SHARE BY REGION 2021 (%)
SEMICONDUCTOR FOUNDRY MARKET SHARE BY REGION 2021
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review


Europe semiconductor foundry market accounts for the second-largest market share due to the availability of advanced technology, rising automotive industry, growing government investment in smart city project and connected cars infrastructure development, and growing consumer electronic industry in the region. Further, the Germany semiconductor foundry market held the largest market share, and the UK semiconductor foundry market was the fastest growing market in the European region


The Asia-Pacific Semiconductor Foundry Market is expected to grow at the fastest CAGR from 2022 to 2030. This is due to rising adoption of IOT devices, growing demand in electronics vehicles, and rising government investment in smart city projects that anticipated to support the market growth in the region. Moreover, China semiconductor foundry market held the largest market share, and the India semiconductor foundry market was the fastest growing market in the Asia-Pacific region


Semiconductor Foundry Key Market Players & Competitive Insights


Major market players are spending a lot of money on R&D to increase their product lines, which will help the semiconductor foundry market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the semiconductor foundry industry must offer cost-effective products to expand and survive in an increasingly competitive and rising market environment.


One of the primary business strategies adopted by manufacturers in the semiconductor foundry industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, semiconductor foundry industry has provided semiconductor with some of the most significant benefits. The semiconductor foundry market major player such as Taiwan Semiconductor Manufacturing Company (TSMC) Limited (Taiwan), Vanguard International Semiconductor Corporation (Taiwan), and others are working to expand the market demand by investing in research and development activities.


In March 2022, DENSO Corporation announced that it would invest USD 0.35 billion in Japan Advanced Semiconductor Manufacturing, Inc., TSMC's majority-owned manufacturing division in Kumamoto Prefecture, Japan, according to a statement from Sony Semiconductor Solutions Corporation and DENSO Corporation. DENSO will own more than 10% of the ownership in JASM after this investment.


In January 2022, The Fab L3B building and its facilities were acquired by VIS. The company expects to reach an approximate monthly manufacturing capacity of 40,000 8-inch wafers due to these acquisitions, which have allowed it to boost its production capacities. This makes it possible for the company to meet the steadily rising short- and long-term demand for semiconductors.


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


Feb. 2022: Intel announced the establishment of a USD 1 billion fund to promote startups and developed companies developing innovative technologies for the foundry eco - system. In an effort to meet the rising need for advanced semiconductor manufacturing on a worldwide scale, Intel recently introduced IFS as part of its IDM 2.0 strategy. IFS is well-positioned to bring cutting-edge packaging and process technology, committed capacity, and the foundry industry's biggest portfolio of distinctive IPs, including all major ISAs.


Jan. 2022: DB HiTek stated that it would acquire RF SOI (silicon-on-insulator) and RF HRS (high resistivity substrate) technologies based on 130nm/110nm technology in order to grow its RF front-end business. The RF front-end, a necessary part for wireless communication, is in charge of sending and receiving data between IT devices (Tx and Rx). It is utilised in a variety of communication contexts, such as mobile devices and the internet of things. The item includes an antenna tuner, a low noise amplifier, and a power amplifier (PA).


May 2022: A chip manufacturing facility will be built in Karnataka state with a $3 billion (Rs 22,900 crore) investment from the international semiconductor consortium ISMC. A 65 nm analogue semiconductor fabrication facility will benefit from the investment. The Kochanahalli Industrial area of Mysuru has received a land request from the ISMC for 150 acres. Upon project approval by the Indian government, this will be one of India's first and largest semiconductor fabrication facilities under the Central Government's Indian Semiconductor Mission. The project is anticipated to create about 1500 direct and 10,000 indirect job opportunities, as well as support the growth of the local semiconductor ecosystem industry with strong multiplier impacts.


Semiconductor Foundry Market Segmentation:


Semiconductor Foundry Technology Outlook




  • 10/7/5 nm




  • 16/14 nm




  • 20 nm




Semiconductor Foundry Industry Outlook




  • Automotive




  • Aerospace




  • Industrial




  • Consumer Electronics Healthcare




  • Pure IDMS




Semiconductor Foundry Foundry Outlook




  • Pure Play Foundry




  • IDMs




Semiconductor Foundry Regional Outlook




  • North America




    • US




    • Canada






  • Europe




    • Germany




    • France




    • UK




    • Italy




    • Spain




    • Rest of Europe






  • Asia-Pacific




    • China




    • Japan




    • India




    • Australia




    • South Korea




    • Australia




    • Rest of Asia-Pacific






  • Rest of the World




    • Middle East




    • Africa




    • Latin America







Report Scope:

Report Attribute/Metric Details
Market Size 2021 USD 52.50 billion
Market Size 2022 USD 56.28 billion
Market Size 2030 USD 91.56 billion
Compound Annual Growth Rate (CAGR) 7.20% (2022-2030)
Base Year 2021
Market Forecast Period 2022-2030
Historical Data 2018 & 2020
Market Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered Technology, Industry, Foundry, and Region
Geographies Covered North America, Europe, Asia Pacific, and Rest of the World
Countries Covered The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled Taiwan Semiconductor Manufacturing Company (TSMC) Limited (Taiwan), Vanguard International Semiconductor Corporation (Taiwan), and others
Key Market Opportunities Rising demand for 5G wireless and Internet of Things solutions
Key Market Dynamics Government funding for the advancement of semiconductor technology


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Frequently Asked Questions (FAQ) :

The Semiconductor Foundry market size was valued at USD 52.50 Billion in 2021.

The market is projected to grow at a CAGR of 7.20% during the forecast period, 2022-2030.

The key players in the market are Robert Bosch GmbH, Continental AG, Panasonic Corporation, Garmin Ltd, and others.

The automotive industry dominated the market in 2021.

The pure play foundry had the largest share in the market.