PUBLISHER: The Business Research Company | PRODUCT CODE: 1924110
PUBLISHER: The Business Research Company | PRODUCT CODE: 1924110
Semiconductor contract manufacturing refers to the outsourcing of chip fabrication, assembly, and testing to specialized third-party manufacturers. This approach enables design-focused companies to reduce costs, avoid substantial capital investments in fabrication facilities, and access advanced manufacturing capabilities provided by leading foundries.
The key component types of semiconductor contract manufacturing include memory devices, logic devices, analog integrated circuits, microprocessor units, discrete power devices, microcontroller units, sensors, and others. Memory devices are semiconductor components used for data storage, such as DRAM, SRAM, and flash memory. The manufacturing process relies on technologies such as wafer fabrication, assembly and packaging, testing services, and design services, using materials such as silicon, gallium nitride (GaN), silicon carbide (SiC), and others. The industry operates through models such as Original Equipment Manufacturers (OEMs), Original Design Manufacturers (ODMs), and Foundry Services and serves applications in consumer electronics, automotive, telecommunications, industrial equipment, and healthcare.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
Tariffs have influenced the semiconductor contract manufacturing market by increasing costs of imported raw materials, silicon wafers, and specialized manufacturing equipment, particularly affecting Asia-Pacific regions such as Taiwan, South Korea, and China, which are major foundry hubs. Automotive, consumer electronics, and telecom sectors face higher production costs, potentially slowing delivery schedules. On the positive side, tariffs are driving investments in local manufacturing capabilities and encouraging technology innovation for cost-efficient and diversified semiconductor production solutions.
The semiconductor contract manufacturing market research report is one of a series of new reports from The Business Research Company that provides semiconductor contract manufacturing market statistics, including semiconductor contract manufacturing industry global market size, regional shares, competitors with a semiconductor contract manufacturing market share, detailed semiconductor contract manufacturing market segments, market trends and opportunities, and any further data you may need to thrive in the semiconductor contract manufacturing industry. This semiconductor contract manufacturing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The semiconductor contract manufacturing market size has grown strongly in recent years. It will grow from $131.18 billion in 2025 to $142.81 billion in 2026 at a compound annual growth rate (CAGR) of 8.9%. The growth in the historic period can be attributed to high capital investment barriers for in-house chip production, growth of consumer electronics, emergence of fabless semiconductor companies, early adoption of logic and memory devices, increasing demand for microprocessor units.
The semiconductor contract manufacturing market size is expected to see strong growth in the next few years. It will grow to $198.64 billion in 2030 at a compound annual growth rate (CAGR) of 8.6%. The growth in the forecast period can be attributed to surge in AI and iot device adoption, growth of automotive electronics and evs, increasing telecom infrastructure deployments, rising demand for advanced analog and power devices, expansion of healthcare and industrial equipment applications. Major trends in the forecast period include expansion of wafer fabrication and advanced packaging services, rising adoption of specialized testing and quality assurance services, increasing collaboration between fabless design firms and foundries, integration of heterogeneous materials like gan and sic for high-performance chips, growing demand for low-cost, high-volume semiconductor productio.
The increasing demand for consumer electronics is expected to drive the growth of the semiconductor contract manufacturing market in the coming years. Consumer electronics refers to electronic devices and gadgets designed for everyday personal and household use. The rise in demand is fueled by rapid technological advancements that make devices more powerful, convenient, and feature-rich. Semiconductor contract manufacturing supports this growth by producing high-quality, specialized chips at scale, enabling faster innovation and cost-effective production of devices such as smartphones, laptops, and TVs. For example, in May 2023, according to the Japan Electronics and Information Technology Industries Association, a Japan-based trade association, Japan's electronic equipment output totaled 771,457 units, with consumer electronics production reaching 32,099 units, representing a 13 percent increase compared to the previous year. Therefore, the growing demand for consumer electronics is contributing to the expansion of the semiconductor contract manufacturing market.
Key companies operating in the semiconductor contract manufacturing market are focusing on technological advancements, such as the 18A process node, to enhance chip performance, energy efficiency, and production scalability for next-generation electronic devices. The 18A process node refers to an advanced semiconductor manufacturing technology with a transistor size of approximately 1.8 nm, enabling smaller, faster, and more energy-efficient chips. For instance, in February 2024, Intel Corporation, a United States-based semiconductor manufacturer, launched Intel Foundry, the world's first systems foundry designed for the AI era. This initiative positions Intel as a leading player in semiconductor contract manufacturing, providing external clients with end-to-end, full-stack manufacturing services using advanced nodes such as 18A. It aims to deliver a resilient and sustainable supply chain, accelerate time-to-market, and support high-performance, energy-efficient chip production across multiple industries.
In September 2025, Secure Semiconductor Manufacturing LLC, a United States-based company specializing in secure printed wiring boards and advanced assembly solutions, acquired a complete surface mount technology (SMT) line from Manncorp. This acquisition strengthens SSM's manufacturing capabilities, enabling scalable, cost-effective, and secure U.S.-made technology for aerospace, defense, energy, and commercial sectors. Manncorp is a United States-based company providing electronic assembly equipment and turnkey SMT solutions.
Major companies operating in the semiconductor contract manufacturing market are Samsung Electronics Co. Ltd., Taiwan Semiconductor Manufacturing Company Limited, Intel Corporation Foundry Services, onsemi Foundry Services, GlobalFoundries Inc., United Microelectronics Corporation, Semiconductor Manufacturing International Corporation, Hua Hong Semiconductor Limited, Tower Semiconductor Ltd., Powerchip Semiconductor Manufacturing Corp, Vanguard International Semiconductor Corporation, X-FAB Silicon Foundries SE, WIN Semiconductors Corp., SilTerra Malaysia Sdn. Bhd., SkyWater Technology Foundry Inc., Polar Semiconductor Inc., Silex Microsystems AB, DB HiTek Co. Ltd., Advanced Micro Foundry Pte. Ltd., Rogue Valley Microdevices Inc.
Asia-Pacific was the largest region in the semiconductor contract manufacturing market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the semiconductor contract manufacturing market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the semiconductor contract manufacturing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The semiconductor contract manufacturing market includes revenues earned by entities by providing services such as wafer fabrication services, assembly and packaging services, testing services, and design support services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Semiconductor Contract Manufacturing Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses semiconductor contract manufacturing market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for semiconductor contract manufacturing ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The semiconductor contract manufacturing market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
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