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:
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.
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.