Semiconductor Foundry Market size was over USD 113.64 billion in 2023 and is likely to reach USD 316.58 billion by 2036, witnessing around 8.2% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of semiconductor foundry is assessed at USD 121.09 billion. The growth of the market can be attributed to the increasing demand for connected cars globally, and growing emphasis on the adoption of automation, analytics and machine learning techniques. Apart from these, rise in demand for 5G smartphones, and high-performance computing products including tablets, PCs, servers and game consoles are also expected to drive market growth in the near future. In 2020, the total shipments of 5G-enabled smartphones in 2020 increased by 20 percent, whereas this same quantity is calculated to grow up by more than 50 percent by the year 2022. Furthermore, surge in adoption of internet of things or IoT enabled devices and increase in government funding for the advancement of semi-conductor technology in several developed nations are projected to provide ample growth opportunities to the market in the upcoming years.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
8.2% |
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Base Year Market Size (2023) |
USD 113.64 billion |
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Forecast Year Market Size (2036) |
USD 316.58 billion |
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Regional Scope |
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The market is segmented by application into consumer electronics & communication, automotive, industrial, and high-performance computing, out of which, the automotive segment is anticipated to hold the largest share in the global semiconductor foundry market on account of the rising demand for safer personal transportation, and growing sales of electric and autonomous vehicles around the world. In addition, rise in developments in the advanced driver assistance systems by major automobile companies is also predicted to boost the growth of the market segment in the near future. Moreover, on the basis of node, the 10/7/5 nm is assessed to grab the largest share during the forecast period ascribing to the lower power consumption and high-speed improvement of this technology node.
Our in-depth analysis of the global semiconductor foundry market includes the following segments:
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By Node |
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By Application |
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On the basis of geographical analysis, the global semiconductor foundry market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa. Asia Pacific is anticipated to hold largest revenue share by 2036, on the back of well-established semiconductors industry in China and Japan, generation of large amount of revenue in Taiwan, and rapid economic growth in countries, namely India and China. Apart from these, Japan is becoming heavily invested in attracting overseas company for securing its own ship supplies and addressing the global shortage of semiconductors. For instance, in April of the year 2020, semiconductors worth USD 2.8 billion were approximately sold in Japan, which rose up to about USD 3.3 billion by the end of December that year. This is expected to be another factor driving market growth in the coming years. Strong presence of prominent market players is also predicted to drive market growth in this region.
August 2021- China’s semiconductor magnate SIMC announced the production of 8-inch silicon wafers in Qingdao and is also involved in the testing of its new 12 inch production line as well. These initiatives are aimed at expanding the capacity of country’s mature technology nodes.
Author Credits: Abhishek Verma
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