Semiconductor Foundry Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Semiconductor Foundry Market Trends & Drivers

Semiconductors' Expanding Role in Automotive, Remote Work, Healthcare, and Smart Cities

Semiconductors are getting used in various sectors, which, in turn, drives the market. Automotive manufacturers integrate vehicle electrical systems that require excellent reliability of voltage regulators and power diodes. Integrated circuits with different functionalities are used in numerous automotive offerings such as infotainment systems, collision detection, and navigation control systems. For instance, an autonomous, modern, and has over 3,000 latest technologies, which are featured with chips.

Moreover, due to the pandemic, now most works are done remotely including learning, business, entertainment, and conversations. Semiconductors are a big part of the technology infrastructure, which is necessary to maintain communication networks outside the traditional setting. In addition, in the healthcare sector, web-integrated wireless devices, , and medical devices that run on semiconductors are vital to make sure new and creative methods of offering healthcare services.

Furthermore, globally, various smart cities are dedicated to immensely enhancing civic services and infrastructure for their people. Owing to this, they need to link nearly every part of the infrastructure with an extensive series of devices, in turn, will connect with people. This interconnected structure is powered by semiconductors. Thus, increasing applications of semiconductors in several industries are driving the market growth.

Semiconductor Foundry Market Analysis

Communication Is Dominating the Market

The communication category held the largest revenue share, of 35%, in 2022. This is because numerous devices in the market come in different forms for the purpose of communication, such as smartphones, tablets, laptops, Bluetooth devices, and Wi-Fi routers, whose demand is skyrocketing across the world.

Today, almost every individual is using a smartphone. Globally, there are over 6 billion users of smartphones. These devices have a range of ways in which an individual can communicate such as voice call, text, video call, and email. These also allow to gain access to the internet, as well as various other tools such as cameras, video recorders, and a multitude of apps. Thus, the demand for smartphones is still very high, with millions of devices being sold each year. Smartphone possession is higher across advanced countries. For instance, in the U.S., the penetration rate of these devices is the highest with more than 80% of the total population.

Regional Analysis

APAC Semiconductor Foundry Market Takes the Lead with 45% Market Share in 2023

APAC held the largest revenue share, of 45%, in 2023 in the semiconductor foundry market. This is due to governments’ support for the growth in the semiconductor sector, the growing end-use industries, and the surging economies in the region.

In China, the semiconductor sector is growing significantly with the support of the government. The country has planned a 14th Five-Year Plan and set a goal to achieve “self-sufficiency” in all the segments of semiconductors. In the last five years, the country has invested in the construction of more than 52 fabs. In addition, the government owns about 40% of its top 100 semiconductor firms. Also, in its “K-Belt Semiconductor Strategy”, for R&D and manufacturing, the government has planned tax credits of up to 50% and 16%, respectively.

Moreover, in India, the government has announced to provide a billion dollars for each new fab, which is set up locally, and also planned to support other investments across the value chain of semiconductors. Chips that are manufactured locally are called “trusted sources” and are utilized in products ranging from CCTV cameras to 5G equipment. In December 2020, India invited an “expression of interest” from chipmakers for establishing a fabrication unit in the country or for the acquisition of such manufacturing units.

Furthermore, South Korea is supporting its vital semiconductor industry, as the government revealed a plan to invest $300 billion and increased tax incentives to help chip manufacturers to compete in the midst of a critical global shortage of key components in 2021. Also, Japan has planned to develop its industry policies to regenerate the chipmaking industry, such as a planned focus on equipment, manufacturing, and materials.

North American Semiconductor Foundry Market Holds a Significant Share

North America accounts for the second-largest market share. This is due to the growing electronics and semiconductor sectors, the rising requirement for electronic systems in the automotive industry, and the presence of major players in the region. For many years, various corporations are leading in developing processors. Also, the lead of the U.S. in semiconductors is the main reason for the technological expertise and economic dominance of the country. The U.S. semiconductor sector has maintained its strong global position in crucial technologies including quantum computing, AI, and 5G.

Moreover, Canada is in a distinctive place, with financial, economic, and political systems, a well-trained workforce, and a significant reputation globally as a country that is open for businesses and is self-assured to take crucial steps to evolve as a prominent market in the future semiconductor foundry landscape. For instance, in February 2022, the Canadian Government announced a significant investment in the semiconductor and photonics industries. The investment of more than $170 million will help set the role of Canada as a global leader in photonics and will strengthen the progress and manufacturing of semiconductors.

European Market To Witness Significant Growth

The European market is increasing at a high rate. This is because major countries such as Germany, the U.K., France, and the Netherlands, are adopting advanced technologies, and the rapid growth in end-use sectors such as IT, electronics, telecom, manufacturing, health, finance, agriculture, and retail.

Moreover, the MEA market is expected to witness significant growth in the coming years. This can be because the regional economy is improving, the population is demanding smartphones and consumer electronics, and the growing semiconductor and automotive sectors in the region.

Market Breakdown

This fully customizable report gives a detailed analysis of the semiconductor foundry industry from 2019 to 2030, based on all the relevant segments and geographies.

Based on Technology Node

• 10/7/5 nm
• 16/14 nm
• 20 nm
• 28 nm
• 45/40 nm
• 65 nm

Based on Application

• Communications
• Consumer Electronics
• Automotive
• Industrial

Based on Type

• Pureplay
• IDMs

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.

Top Semiconductor Foundry Companies