Semiconductor Foundry Market Forecasts Record +23% Growth in 2021
🟩 Growth of the semiconductor foundry market
IC Insights predicts that the global semiconductor foundry market will be worth $107.2 billion in 2021. This is due to the strong demand for ICs used in high-growth market applications such as data centers, 5G, robotics, autonomous driving, artificial intelligence, machine learning, etc. Demand for semiconductors is expected to remain high in the future, with the foundry market growing at a compound annual growth rate of +11.6% and expected to reach $151.2 billion by 2025.
Classification of semiconductor foundries
The overall foundry market consists of Pure-play foundries such as TSMC, GlobalFoundries, UMC, and SMIC and integrated device manufacturer (IDM) foundries, such as Samsung and Intel. The dedicated foundry only manufactures ICs for other companies, and IDM foundries provide foundry services in addition to their own manufacturing.
The compound annual growth rate of +11.6% is the combined combination of both professional and IDM foundries. Is this large compared to the growth rate of semiconductors as a whole?
🟩 Foundry growth from the industry as a whole
Compare the growth rate of the foundry business with the growth rate of the semiconductor market as a whole. The annual growth rate of medium- to long-term foundries through 2025 will be well above +5% for the industry as a whole.
The dedicated foundry market grew significantly in 2020, up +23%. However, it is expected to grow by +24% in 2021. In the medium to long term, the growth rate is +12.2% until 2025, and it is expected to grow to $125.1 billion in 2025.
The IDM foundry market was +18% in 2021 and is projected to grow +9% through 2025.
Total semiconductor market
The overall semiconductor market is expected to grow +17% in 2021 and reach $600 billion by 2025. This is calculated as +5% of the annual growth rate of the semiconductor industry as a whole.
The semiconductor foundry market is expected to grow faster than the semiconductor industry as a whole
Currently, due to the serious shortage of semiconductors and the movement of each country to manufacture semiconductors in their own countries, foundries are growing at a high growth rate. Intel, the leading semiconductor company, is also planning to enter the foundry business to capture this growth area.