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Global Foundry Service Market 2016-2020

Global Foundry Service Market 2016-2020

About Global Foundry Service Market

The global foundry service market was valued at $52.5 billion in 2015 and is likely to witness healthy growth during the forecast period, despite being affected by the cyclical nature of the semiconductor industry. The market is likely to be valued at $75.2 billion by 2020, growing at a CAGR of 7.45% during the forecast period.

Technavio’s analysts forecast the global foundry service market to grow at a CAGR of 7.45% during the period 2016-2020.

Covered in this report

The report covers the present scenario and the growth prospects of the global foundry service market for 2016-2020. To calculate the market size, the report considers the sale of foundry services to fabless companies.

The market is divided into the following segments based on geography:

  • APAC
  • Europe
  • North America
  • ROW
Technavio's report, Global Foundry Service Market 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

Key vendors
  • GlobalFoundries
  • Samsung Semiconductor
  • SMIC
  • UMC
  • TSMC
Other prominent vendors
  • Tower Jazz Semiconductor
  • Vanguard International Semiconductor
  • Power chip Technology
  • Shanghai Huahong Grace Semiconductor Manufacturing
  • Dongbu HiTek
  • MagnaChip Semiconductor
  • WIN Semiconductors
Market driver
  • Rising demand for smartphones
  • For a full, detailed list, view our report
Market challenge
  • Inconsistent foreign exchange rates
  • For a full, detailed list, view our report
Market trend
  • Increasing adoption of FinFET architecture
  • For a full, detailed list, view our report
Key questions answered in this report
  • What will the market size be in 2020 and what will the growth rate be?
  • What are the key market trends?
  • What is driving this market?
  • What are the challenges to market growth?
  • Who are the key vendors in this market space?
  • What are the market opportunities and threats faced by the key vendors?
  • What are the strengths and weaknesses of the key vendors?


Press Release

Technavio Announces the Publication of its Research Report – Global Foundry Service Market 2016-2020

Technavio recognizes the following companies as the key players in the global foundry service market: GlobalFoundries, Samsung Semiconductor, SMIC, UMC, and TSMC.

Other Prominent Vendors in the market are: Tower Jazz Semiconductor, Vanguard International Semiconductor, Power chip Technology, Shanghai Huahong Grace Semiconductor Manufacturing, Dongbu HiTek, MagnaChip Semiconductor, and WIN Semiconductors.

Commenting on the report, an analyst from Technavio’s team said: “Automation in automobiles will be a key trend for market growth. Automobiles are undergoing a considerable digital makeover as increasing number of manufacturers are considering automation as a serious trend in the coming years. Leading automobile manufacturers such as Toyota, Audi, and Mercedes have invested considerably in the R&D of automobile automation. Semiconductor content plays a key role in automobile automation, especially in networked communication and driving automation. Next-generation automobiles are expected to include speech recognition, video and image compatibilities, and IC-integrated LED front lighting to provide optimal driving experience. Semiconductor content used for automobile automation provides accurate information for the inbuilt Artificial Intelligence (AI) to drive optimally. Therefore, growing demand for high-performance ICs will drive the foundry service market during the forecast period.”

According to the report, rising demand for smartphones will be a key driver for market growth. Since 2011, the global smartphone shipment has increased manifold due to the access to varied cellphone functionalities, such as email, video, music player, e-commerce websites, and the availability of low-cost smartphones from budget manufacturers. The global smartphone shipment increased by 16% to 350 million in Q3 of 2015. Smartphone manufacturers shipped a total of almost 1.3 billion smartphones in 2014 compared to 490 million in 2011. As semiconductor ICs are an integral part of these devices, the demand for these devices will instigate a subsequent demand for ICs, leading to the growth of the market during the forecast period.

Further, the report states that changes in wafer processing technology have posed a major challenge to the market vendors. The semiconductor industry is continuously witnessing transitions such as miniaturization of nodes and increasing sizes of the wafer in ultra-large scale integration (ULSI) fabrication technology. These changes instigate semiconductor manufacturers to develop and adopt new technologies that are in line with the changes in the semiconductor IC architecture. Rapid technological changes also force vendors to invest in new technology without recovering the expenses involved in the development of the current technology as their competitors have introduced a better IC development system, such as improved lithography systems.

Companies Mentioned

GlobalFoundries, Samsung Semiconductor, SMIC, UMC, TSMC, Tower Jazz Semiconductor, Vanguard International Semiconductor, Power chip Technology, Shanghai Huahong Grace Semiconductor Manufacturing, Dongbu HiTek, MagnaChip Semiconductor, WIN Semiconductors.

  • Executive summary
    • Highlights
  • Scope of the report
    • Definition
    • Source year and forecast period
    • Market overview
    • Market size computation
    • Market segmentation
      • Table Global foundry service market segmentation
    • Geographical coverage
      • Table List of countries in key regions
    • Vendor segmentation
      • Table Market vendors
    • Common currency conversion rates
      • Table Currency conversions
    • Top-vendor offerings
      • Table Product offerings
  • Market research methodology
    • Research methodology
    • Economic indicators
  • Introduction
    • Key market highlights
  • Semiconductor industry overview
    • Table Semiconductor value chain
    • Table Front-end production process
    • Table Back-end production process
  • Market landscape
    • Market overview
      • Table Factors relevant to customers in foundry service market
    • Market size and forecast
      • Table Global foundry service market forecast 2015-2020 ($ billions)
    • Five forces analysis
      • Table Five forces analysis
  • Market segmentation by end-user
    • Global foundry service market by end-user 2015
      • Table Global foundry service market by end-user 2015
    • Global foundry service market by end-user 2020
      • Table Global foundry service market by end-user 2020
    • Communications
      • Table Global foundry service market by communications 2015-2020 ($ billions)
    • Consumer electronics
      • Table Global foundry service market by consumer electronics 2015-2020 ($ billions)
    • Computer
      • Table Global foundry service market by computer 2015-2020 ($ billions)
    • Others
      • Table Global foundry service market by others 2015-2020 ($ billions)
  • Market segmentation by business type
    • Table Global foundry service market by business type 2015 and 2020
    • Global foundry service market by pure-play foundries
      • Table Global foundry service market by pure-play foundries 2015-2020 ($ billions)
    • Global foundry service market by IDMs
      • Table IDMs in the global foundry service market 2015-2020 ($ billions)
  • Geographical segmentation
    • Global foundry service market by geography 2015
      • Table Global foundry service market by geography 2015
    • Global foundry service market by geography 2020
      • Table Global foundry service market by geography 2020
    • Foundry service market in APAC
      • Table Foundry service market in APAC 2015-2020 ($ billions)
    • Foundry service market in Americas
      • Table Foundry service market in Americas 2015-2020 ($ billions)
    • Foundry service market in EMEA
      • Table Foundry service market in EMEA 2015-2020 ($ billions)
  • Market drivers
    • Era of wireless computing devices
    • Growing complexity of IC designs
    • Declining cost per function of ICs
    • Requirement for enhanced display functionality in consumer electronic devices
      • Table Urbanization percentage and growth rate for China, Brazil, and India
    • Short replacement cycle of mobile devices
    • Rising application of SOCs across devices
      • Table CAGR of LED chip and sensor market 2015-2020
  • Impact of drivers
    • Table Impact of drivers
  • Market challenges
    • Rapid technological changes
    • Uncertain global economic conditions
    • Limited number of customers
    • Dependency on limited key suppliers
    • High inventory levels in supply chain
      • Table Global semiconductor market 1990-2015 ($ billions)
  • Impact of drivers and challenges
    • Table Impact of drivers and challenges
  • Market trends
    • Automation in automobiles
    • Increasing adoption of FinFET architecture
    • Development of 3D chip packaging
    • Rising number of fabless semiconductor companies
    • Growth of smart cities
  • Vendor landscape
    • Competitive scenario
      • Table Market share analysis of global vendors 2015 (%)
    • Key vendor mapping
      • Table Vendor portfolio matrix
    • Key vendors
      • Table SMIC's foundry service process
      • Table SMIC: Revenue by foundry services 2015 (% share)
      • Table SMIC: Revenue by foundry service consumers (% share)
      • Table SMIC: Foundry revenue trend since 2012 (billions)
      • Table UMC: Major milestones achieved during 2010-2015
      • Table Step-by-step processes involved in UMC's foundry services
      • Table Primary customers of UMC
      • Table UMC: Trends of revenue contribution from different customer segments 2013-2015 (%)
      • Table UMC: Monthly foundry service sales data trends 2014-2015 (in millions)
      • Table TSMC: Foundry-based strategies
      • Table TSMC: Revenue contribution from each customer segment 2013-2015 (%)
    • Other prominent vendors
      • Table Other prominent vendors in global foundry service market
  • Appendix
    • List of abbreviations
  • Explore Technavio

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