Global Semiconductor Foundry Market 2017-2021
About Semiconductor Foundry
A semiconductor circuit chip is a tiny electronic device consisting of billions of components, such as transistors, capacitors, inductors, transformers, that store, move, and process data. The semiconductor chips are made from semiconductor materials such as silicon and germanium. These materials have semiconducting properties, which enable precise control of the flow of electrical current through them. Semiconductor chips enable devices to store and retrieve documents, photos, and music. They make up the brains, memory, and capacity for data communication for various products including cellular phones, TVs, gaming systems, aircraft, sea crafts, industrial materials, and military machinery, equipment, and weaponry. Mechanical products are heavily dependent on chip-based electronics. Fuel supply system in automobiles is operated by the carburetor. The carburetor was designed as a completely mechanical system that operated by opening and closing of valves to control the flow of fuel powered by gravity in a two-wheeler or a fuel pump in a multi-wheeled vehicle. But currently, the fuel supply system is controlled by an electronic system. The carburetor still exists, but its working is performed using an electronic governor that constantly monitors and adjusts the carburetor based on the required or set parameters. The manufacturing of semiconductor ICs is carried out by semiconductor foundries.
Technavio’s analysts forecast the global Semiconductor Foundry market to grow at a CAGR of 11.01% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global Semiconductor Foundry market for 2017-2021. To calculate the market size, the report considers the revenue generated by leading pure-play foundries and IDMs.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Semiconductor Foundry Market 2017-2021
Technavio recognizes the following companies as the key players in the global semiconductor foundry market: TSMC, GLOBALFOUNDRIES, UMC, SMIC, and SAMSUNG
Other Prominent Vendors in the market are: Dongbu HiTek, Fujitsu Semiconductor, Hua Hong Semiconductor, MagnaChip Semiconductor, Powerchip Technology, STMicroelectronics, TowerJazz, Vanguard International Semiconductor Corporation, WIN Semiconductors, and X-FAB Silicon Foundries.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is Increasing adoption of 3D NAND. 3D NAND is a flash memory, wherein the cells are stacked vertically in multiple layers. 3D NAND will dominate solid state drives in 2017 since suppliers are planning to reduce the shipment of 2D NAND and planar NAND. 3D NAND flash drives can be used for IoT, smartphones, and smart cars. Many firms are producing fabs that focus solely on 3D NAND. In 2016, Western Digital started manufacturing 3D NAND chips with 64 layers.”
According to the report, one of the major drivers for this market is Increasing demand for IoT IoT is an ecosystem where many devices are connected to the Internet. These devices can include cellphones to tablets, cars, engines, and machines in plant production facilities. The business possibilities are numerous with the advent of IoT. Objects are assigned an IP address and can collect and receive data without the need for any manual operation of the device. From a broader perspective, devices can take decisions using the information/data that it has received without being dependent on manual help.
Further, the report states that one of the major factors hindering the growth of this market is Excess IC inventory. One of the biggest challenges that semiconductor foundries face is the increasing inventory level for ICs. Since the semiconductor market is extremely volatile, it is difficult to forecast what might be the demands for semiconductors in the future. At present, the semiconductor wafers that are being used to produce these chips are in the range 200-300 mm. But with an increasing need for small-sized electronics and wearable devices, there is a trend toward larger wafer size of 450 mm. The demand for chips that are formed by the 200-300-mm wafer can get impacted, and this could result in excess ICs inventory.
TSMC, GLOBALFOUNDRIES, UMC, SMIC, SAMSUNG, Dongbu HiTek, Fujitsu Semiconductor, Hua Hong Semiconductor, MagnaChip Semiconductor, Powerchip Technology, STMicroelectronics, TowerJazz, Vanguard International Semiconductor Corporation, WIN Semiconductors, and X-FAB Silicon Foundries.