Foundry Services Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2031 - By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa)

Description

The global foundry services market is poised for substantial growth over the next decade, fueled by increasing demand for semiconductor chips and advancements in technology. According to recent data, the market's sales revenues reached a staggering US$ 124.6 billion in 2023, and it is projected to expand at a robust CAGR of 6.0% from 2024 to 2031. By 2031, the market size is expected to soar to US$ 200 billion from US$ 130 billion in 2024.

Key Trends Driving Market Expansion

The burgeoning demand for foundry services in electronics and communication applications stands out as a primary driver for market growth. With the rise in consumer electronics adoption and the increasing popularity of the foundry model, particularly in emerging nations like China and India, the market is witnessing a surge in sales revenue. Additionally, the establishment of new facilities by key players, coupled with investments in research and development, is further propelling market expansion.

Factors Fueling Demand for Foundry Services

The escalating demand for consumer electronics, including smartphones, tablets, laptops, and other gadgets, is a key factor driving the need for foundry services. Furthermore, the advent of emerging technologies such as artificial intelligence, 5G wireless technology, and driverless cars necessitates the manufacturing of semiconductor chips through foundry services. Moreover, the expansion of the renewable energy sector is contributing to increased demand for foundry services for the production of components used in renewable energy technologies.

Factors Restraining Market Growth

Despite its promising outlook, the foundry services market faces challenges such as the high cost of production and the complexity of manufacturing. The significant expenses associated with setting up and operating a foundry hinder market expansion. Moreover, the complexity of the semiconductor industry and the intricate manufacturing process pose barriers to entry for certain businesses, limiting competition and market growth.

Country-wise Insights

The demand for foundry services in the United States is anticipated to continue its upward trend, propelled by the expanding industries like telecommunications and semiconductors. From 2019 to 2023, sales revenues in the USA market maintained steady growth, with further escalation expected at a considerable rate through 2033. The industry is predicted to exceed a significant valuation by 2031, with several US-based foundry service companies implementing strategic initiatives to bolster their market presence. For instance, GlobalFoundries announced plans to establish an advanced manufacturing facility in upstate New York, aimed at supporting semiconductor manufacturing within the United States.

China retains its dominant position in the global foundry services market, driven by the increasing demand for electronic products and the thriving semiconductor sector. The Chinese market is anticipated to experience robust growth through 2031, building upon its strong performance from 2019 to 2023. With a substantial presence of leading foundry service providers, semiconductor manufacturers, and electronics firms, China leads the electronic and semiconductor manufacturing landscape. Strategic partnerships, such as the collaboration between Shanghai Huahong Grace and Rambus Inc., play a pivotal role in driving market expansion. This partnership focuses on developing cutting-edge memory and interface technologies for next-generation computing and data centers, including high-speed memory products like DDR5, HBM3, and GDDR6.

Category-wise Insights

The 12-inch segment of foundry services is poised for significant growth, attributed to its various benefits such as higher current densities, increased routing and transistor density, and reduced die size. With a CAGR of 6.1% over the next decade, most foundries are expected to shift their focus to 12-inch wafer production capacity. Additionally, the electronics sector is anticipated to dominate the global foundry services industry, driven by the rising demand for smartphones, tablets, PCs, servers, and 5G base stations.

Competitive Analysis

Leading foundry service providers are adopting various strategies to enhance their market presence, including mergers, acquisitions, and partnerships. These initiatives aim to increase sales and expand their customer base while driving advancements in semiconductor technology.

Key Companies Profiled

Vanguard International Semiconductor
Powerchip Technology
Shanghai Huahong Grace Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing
Global Foundries
Samsung Semiconductor
TowerJazz Semiconductor
Semiconductor Manufacturing International
DB HiTek

Foundry Services Market Segmentation:

By Type:

8 inches
12 inches

By Application:

Communication
Electronics

By Region:

North America
Latin America
Europe
Asia Pacific
Middle East and Africa

1. Executive Summary

1.1. Global Foundry Services Market Snapshot
1.2. Future Projections
1.3. Key Market Trends
1.4. Regional Snapshot, by Value, 2023
1.5. Analyst Recommendations

2. Market Overview

2.1. Market Definitions and Segmentations
2.2. Market Dynamics
- 2.2.1. Drivers
- 2.2.2. Restraints
- 2.2.3. Market Opportunities
2.3. Value Chain Analysis
2.4. Porter's Five Forces Analysis
2.5. COVID-19 Impact Analysis
- 2.5.1. Supply
- 2.5.2. Demand
2.6. Impact of Ukraine-Russia Conflict
2.7. Economic Overview
- 2.7.1. World Economic Projections
2.8. PESTLE Analysis

3. Global Foundry Services Market Outlook, 2018 - 2031

3.1. Global Foundry Services Market Outlook, by Type, Value (US$ Bn), 2018 - 2031
- 3.1.1. Key Highlights
  - 3.1.1.1. 8 inches
  - 3.1.1.2. 12 inches
3.2. Global Foundry Services Market Outlook, by Application, Value (US$ Bn), 2018 - 2031
- 3.2.1. Key Highlights
  - 3.2.1.1. Communication
  - 3.2.1.2. Electronics
3.3. Global Foundry Services Market Outlook, by Region, Value (US$ Bn), 2018 - 2031
- 3.3.1. Key Highlights
  - 3.3.1.1. North America
  - 3.3.1.2. Europe
  - 3.3.1.3. Asia Pacific
  - 3.3.1.4. Latin America
  - 3.3.1.5. Middle East & Africa

4. North America Foundry Services Market Outlook, 2018 - 2031

4.1. North America Foundry Services Market Outlook, by Type, Value (US$ Bn), 2018 - 2031
- 4.1.1. Key Highlights
  - 4.1.1.1. 8 inches
  - 4.1.1.2. 12 inches
4.2. North America Foundry Services Market Outlook, by Application, Value (US$ Bn), 2018 - 2031
- 4.2.1. Key Highlights
  - 4.2.1.1. Communication
  - 4.2.1.2. Electronics
4.3. North America Foundry Services Market Outlook, by Country, Value (US$ Bn), 2018 - 2031
- 4.3.1. Key Highlights
  - 4.3.1.1. U.S. Foundry Services Market by Type, Value (US$ Bn), 2018 - 2031
  - 4.3.1.2. U.S. Foundry Services Market by Application, Value (US$ Bn), 2018 - 2031
  - 4.3.1.3. Canada Foundry Services Market by Type, Value (US$ Bn), 2018 - 2031
  - 4.3.1.4. Canada Foundry Services Market by Application, Value (US$ Bn), 2018 - 2031
- 4.3.2. BPS Analysis/Market Attractiveness Analysis

5. Europe Foundry Services Market Outlook, 2018 - 2031

5.1. Europe Foundry Services Market Outlook, by Type, Value (US$ Bn), 2018 - 2031
- 5.1.1. Key Highlights
  - 5.1.1.1. 8 inches
  - 5.1.1.2. 12 inches
5.2. Europe Foundry Services Market Outlook, by Application, Value (US$ Bn), 2018 - 2031
- 5.2.1. Key Highlights
  - 5.2.1.1. Communication
  - 5.2.1.2. Electronics
- 5.2.2. BPS Analysis/Market Attractiveness Analysis
5.3. Europe Foundry Services Market Outlook, by Country, Value (US$ Bn), 2018 - 2031
- 5.3.1. Key Highlights
  - 5.3.1.1. Germany Foundry Services Market by Type, Value (US$ Bn), 2018 - 2031
  - 5.3.1.2. Germany Foundry Services Market by Application, Value (US$ Bn), 2018 - 2031
  - 5.3.1.3. U.K. Foundry Services Market by Type, Value (US$ Bn), 2018 - 2031
  - 5.3.1.4. U.K. Foundry Services Market by Application, Value (US$ Bn), 2018 - 2031
  - 5.3.1.5. France Foundry Services Market by Type, Value (US$ Bn), 2018 - 2031
  - 5.3.1.6. France Foundry Services Market by Application, Value (US$ Bn), 2018 - 2031
  - 5.3.1.7. Italy Foundry Services Market by Type, Value (US$ Bn), 2018 - 2031
  - 5.3.1.8. Italy Foundry Services Market by Application, Value (US$ Bn), 2018 - 2031
  - 5.3.1.9. Turkey Foundry Services Market by Type, Value (US$ Bn), 2018 - 2031
  - 5.3.1.10. Turkey Foundry Services Market by Application, Value (US$ Bn), 2018 - 2031
  - 5.3.1.11. Russia Foundry Services Market by Type, Value (US$ Bn), 2018 - 2031
  - 5.3.1.12. Russia Foundry Services Market by Application, Value (US$ Bn), 2018 - 2031
  - 5.3.1.13. Rest of Europe Foundry Services Market by Type, Value (US$ Bn), 2018 - 2031
  - 5.3.1.14. Rest of Europe Foundry Services Market by Application, Value (US$ Bn), 2018 - 2031
- 5.3.2. BPS Analysis/Market Attractiveness Analysis

6. Asia Pacific Foundry Services Market Outlook, 2018 - 2031

6.1. Asia Pacific Foundry Services Market Outlook, by Type, Value (US$ Bn), 2018 - 2031
- 6.1.1. Key Highlights
  - 6.1.1.1. 8 inches
  - 6.1.1.2. 12 inches
6.2. Asia Pacific Foundry Services Market Outlook, by Application, Value (US$ Bn), 2018 - 2031
- 6.2.1. Key Highlights
  - 6.2.1.1. Communication
  - 6.2.1.2. Electronics
- 6.2.2. BPS Analysis/Market Attractiveness Analysis
6.3. Asia Pacific Foundry Services Market Outlook, by Country, Value (US$ Bn), 2018 - 2031
- 6.3.1. Key Highlights
  - 6.3.1.1. China Foundry Services Market by Type, Value (US$ Bn), 2018 - 2031
  - 6.3.1.2. China Foundry Services Market by Application, Value (US$ Bn), 2018 - 2031
  - 6.3.1.3. Japan Foundry Services Market by Type, Value (US$ Bn), 2018 - 2031
  - 6.3.1.4. Japan Foundry Services Market by Application, Value (US$ Bn), 2018 - 2031
  - 6.3.1.5. South Korea Foundry Services Market by Type, Value (US$ Bn), 2018 - 2031
  - 6.3.1.6. South Korea Foundry Services Market by Application, Value (US$ Bn), 2018 - 2031
  - 6.3.1.7. India Foundry Services Market by Type, Value (US$ Bn), 2018 - 2031
  - 6.3.1.8. India Foundry Services Market by Application, Value (US$ Bn), 2018 - 2031
  - 6.3.1.9. Southeast Asia Foundry Services Market by Type, Value (US$ Bn), 2018 - 2031
  - 6.3.1.10. Southeast Asia Foundry Services Market by Application, Value (US$ Bn), 2018 - 2031
  - 6.3.1.11. Rest of Asia Pacific Foundry Services Market by Type, Value (US$ Bn), 2018 - 2031
  - 6.3.1.12. Rest of Asia Pacific Foundry Services Market by Application, Value (US$ Bn), 2018 - 2031
- 6.3.2. BPS Analysis/Market Attractiveness Analysis

7. Latin America Foundry Services Market Outlook, 2018 - 2031

7.1. Latin America Foundry Services Market Outlook, by Type, Value (US$ Bn), 2018 - 2031
- 7.1.1. Key Highlights
  - 7.1.1.1. 8 inches
  - 7.1.1.2. 12 inches
7.2. Latin America Foundry Services Market Outlook, by Application, Value (US$ Bn), 2018 - 2031
- 7.2.2. BPS Analysis/Market Attractiveness Analysis
7.3. Latin America Foundry Services Market Outlook, by Country, Value (US$ Bn), 2018 - 2031
- 7.3.1. Key Highlights
  - 7.3.1.1. Brazil Foundry Services Market by Type, Value (US$ Bn), 2018 - 2031
  - 7.3.1.2. Brazil Foundry Services Market by Application, Value (US$ Bn), 2018 - 2031
  - 7.3.1.3. Mexico Foundry Services Market by Type, Value (US$ Bn), 2018 - 2031
  - 7.3.1.4. Mexico Foundry Services Market by Application, Value (US$ Bn), 2018 - 2031
  - 7.3.1.5. Argentina Foundry Services Market by Type, Value (US$ Bn), 2018 - 2031
  - 7.3.1.6. Argentina Foundry Services Market by Application, Value (US$ Bn), 2018 - 2031
  - 7.3.1.7. Rest of Latin America Foundry Services Market by Type, Value (US$ Bn), 2018 - 2031
  - 7.3.1.8. Rest of Latin America Foundry Services Market by Application, Value (US$ Bn), 2018 - 2031
- 7.3.2. BPS Analysis/Market Attractiveness Analysis

8. Middle East & Africa Foundry Services Market Outlook, 2018 - 2031

8.1. Middle East & Africa Foundry Services Market Outlook, by Type, Value (US$ Bn), 2018 - 2031
- 8.1.1. Key Highlights
  - 8.1.1.1. 8 inches
  - 8.1.1.2. 12 inches
8.2. Middle East & Africa Foundry Services Market Outlook, by Application, Value (US$ Bn), 2018 - 2031
- 8.2.1. Key Highlights
  - 8.2.1.1. Communication
  - 8.2.1.2. Electronics
- 8.2.2. BPS Analysis/Market Attractiveness Analysis
8.3. Middle East & Africa Foundry Services Market Outlook, by Country, Value (US$ Bn), 2018 - 2031
- 8.3.1. Key Highlights
  - 8.3.1.1. GCC Foundry Services Market by Type, Value (US$ Bn), 2018 - 2031
  - 8.3.1.2. GCC Foundry Services Market by Application, Value (US$ Bn), 2018 - 2031
  - 8.3.1.3. South Africa Foundry Services Market by Type, Value (US$ Bn), 2018 - 2031
  - 8.3.1.4. South Africa Foundry Services Market by Application, Value (US$ Bn), 2018 - 2031
  - 8.3.1.5. Egypt Foundry Services Market by Type, Value (US$ Bn), 2018 - 2031
  - 8.3.1.6. Egypt Foundry Services Market by Application, Value (US$ Bn), 2018 - 2031
  - 8.3.1.7. Nigeria Foundry Services Market by Type, Value (US$ Bn), 2018 - 2031
  - 8.3.1.8. Nigeria Foundry Services Market by Application, Value (US$ Bn), 2018 - 2031
  - 8.3.1.9. Rest of Middle East & Africa Foundry Services Market by Type, Value (US$ Bn), 2018 - 2031
  - 8.3.1.10. Rest of Middle East & Africa Foundry Services Market by Application, Value (US$ Bn), 2018 - 2031
- 8.3.2. BPS Analysis/Market Attractiveness Analysis

9. Competitive Landscape

9.1. Manufacturer vs by Application Heatmap
9.2. Company Market Share Analysis, 2023
9.3. Competitive Dashboard
9.4. Company Profiles
- 9.4.1. Vanguard International Semiconductor
  - 9.4.1.1. Company Overview
  - 9.4.1.2. Type Portfolio
  - 9.4.1.3. Financial Overview
  - 9.4.1.4. Business Strategies and Development
- 9.4.2. Powerchip Technology
  - 9.4.2.1. Company Overview
  - 9.4.2.2. Type Portfolio
  - 9.4.2.3. Financial Overview
  - 9.4.2.4. Business Strategies and Development
- 9.4.3. Shanghai Huahong Grace Semiconductor Manufacturing
  - 9.4.3.1. Company Overview
  - 9.4.3.2. Type Portfolio
  - 9.4.3.3. Financial Overview
  - 9.4.3.4. Business Strategies and Development
- 9.4.4. Taiwan Semiconductor Manufacturing
  - 9.4.4.1. Company Overview
  - 9.4.4.2. Type Portfolio
  - 9.4.4.3. Financial Overview
  - 9.4.4.4. Business Strategies and Development
- 9.4.5. Global Foundries
  - 9.4.5.1. Company Overview
  - 9.4.5.2. Type Portfolio
  - 9.4.5.3. Financial Overview
  - 9.4.5.4. Business Strategies and Development
- 9.4.6. Samsung Semiconductor
  - 9.4.6.1. Company Overview
  - 9.4.6.2. Type Portfolio
  - 9.4.6.3. Financial Overview
  - 9.4.6.4. Business Strategies and Development
- 9.4.7. TowerJazz Semiconductor
  - 9.4.7.1. Company Overview
  - 9.4.7.2. Type Portfolio
  - 9.4.7.3. Financial Overview
  - 9.4.7.4. Business Strategies and Development
- 9.4.8. Semiconductor Manufacturing International
  - 9.4.8.1. Company Overview
  - 9.4.8.2. Type Portfolio
  - 9.4.8.3. Financial Overview
  - 9.4.8.4. Business Strategies and Development
- 9.4.9. DB HiTek
  - 9.4.9.1. Company Overview
  - 9.4.9.2. Type Portfolio
  - 9.4.9.3. Financial Overview
  - 9.4.9.4. Business Strategies and Development

10. Appendix

10.1. Research Methodology
10.2. Report Assumptions
10.3. Acronyms and Abbreviations