Semiconductor Foundry Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The Semiconductor Foundry Market is expected to reach a market size of $ 64,688,544,000 in 2024, and is expected to reach $ 103,323,800,000 by 2032. The CAGR of 7.2% during the forecast period is quite high. The emergence of IoT, artificial intelligence and 5G network will drive the demand for advanced semiconductors. As more and more industries turn to digitalization and automation, the demand for advanced semiconductors will also increase, thus driving the market. In order to meet the increasing demand for semiconductors, the main foundry companies such as TSMC, Samsung and Global Foundries have invested a lot in expanding capacity and technology. These efforts, such as establishing strategic cooperation with universities and research institutions, and investing in the construction of new fabs, have become the main characteristics of the competition in this field. For example, TSMC continues to invest in advanced technology and is collaborating with large technology companies. This reflects the industry's commitment to innovation and the pursuit of customer needs. As this trend continues, the foundry market will continue to lead the trend of future technology development.

Regional Market Size

Regional Deep Dive

Among the semiconductor foundry market, the growth in various regions is based on the increasing demand for advanced semiconductor technology for consumer electronics, automobiles, and industry. Each region has its own characteristics that are affected by the local economy, technological advancement, and regulations. North America is the leader in innovation and R&D investment. Europe is the leader in the environment and in compliance with regulations. Asia-Pacific is the leader in manufacturing and supply chain integration. The Middle East and Africa are emerging markets that are becoming interested in semiconductors, and Latin America is developing its own semiconductor industry, but at a slower pace.

Europe

• The European Union's European Chips Act is a landmark initiative aimed at increasing the region's semiconductor production capacity, with a focus on sustainability and reducing reliance on non-European suppliers.
• Key players like ASML and STMicroelectronics are investing heavily in R&D to develop next-generation lithography and fabrication technologies, positioning Europe as a leader in advanced semiconductor manufacturing.

Asia Pacific

• Taiwan Semiconductor Manufacturing Company (TSMC) continues to expand its foundry services, with significant investments in new fabs in Taiwan and the U.S., reinforcing its position as a global leader in semiconductor manufacturing.
• China's push for self-sufficiency in semiconductor production is leading to increased investments in domestic foundries, with companies like SMIC ramping up their capabilities despite facing international trade restrictions.

Latin America

• Brazil is making strides in semiconductor development, with government programs aimed at attracting foreign investment and fostering local startups in the semiconductor space.
• Mexico is emerging as a key player in semiconductor assembly and testing, benefiting from its proximity to the U.S. market and established manufacturing infrastructure.

North America

• The CHIPS Act, enacted in 2022, aims to bolster domestic semiconductor manufacturing, providing significant funding and incentives for companies like Intel and TSMC to expand their foundry operations in the U.S.
• Recent collaborations between major tech firms and universities, such as the partnership between MIT and various semiconductor companies, are fostering innovation in semiconductor design and manufacturing processes.

Middle East And Africa

• Countries like Israel are becoming hubs for semiconductor innovation, with companies such as Intel investing in local R&D and manufacturing facilities to leverage the region's skilled workforce.
• The UAE is launching initiatives to develop its semiconductor industry, including partnerships with global firms to establish a local foundry ecosystem, aiming to diversify its economy beyond oil.

Did You Know?

“Did you know that the semiconductor industry is one of the most research-intensive sectors, with companies investing over $30 billion annually in R&D to develop cutting-edge technologies?” — Semiconductor Industry Association (SIA)

Segmental Market Size

The Foundry Market is a critical sub-segment of the Semiconductor Industry, and is currently undergoing a period of robust growth, driven by the increasing demand for advanced semiconductors. Artificial intelligence is driving the demand for advanced chips, as are 5G networks, and the growing need for high-performance computing. These are all facets of a broader trend towards more sophisticated technology that requires new semiconductor designs and manufacturing capabilities. Today the foundry market is in a mature stage of development, with the leading companies such as TSMC and Samsung advancing the field. Consequently, the leading countries are primarily in East Asia, such as Taiwan and South Korea. In terms of application, the foundry market is primarily focused on the mobile and automotive electronics markets, where precision and speed are paramount. Also driving growth are trends such as green chemistry and government policies that encourage local production of semiconductors. And technological developments such as extreme-ultraviolet lithography and advanced packaging are reshaping the future of the foundry market.

Future Outlook

During the period from 2024 to 2032, the Semiconductor Foundry Market is expected to grow at a robust compound annual growth rate (CAGR) of 7.2%. The growth will be driven by the rising demand for advanced semiconductors in various sectors, such as the consumer electronics, automotive, and telecommunications industries. IoT, artificial intelligence, and 5G will also spur the demand for advanced semiconductors. As a result, the foundry industry will have to increase its production capacity and continue to develop new process technologies. Also, technological advancements such as the transition to smaller process nodes and the integration of advanced packaging will be critical to the market’s future. The foundry industry will have to invest in R&D to develop advanced manufacturing processes that can keep pace with the growing complexity of chip designs. Also, supportive government policies in regions such as North America and Europe will further drive market growth. The penetration of advanced nodes (below 7 nm) in the foundry market is expected to reach over 30% by 2032, which reflects the industry’s shift toward high-performance computing and specialized applications.