Semiconductor Foundry Market Size to Reach $231.5 Billion by 2032

The semiconductor foundry market is expected to grow during the forecast period, owing to increasing consumption of consumer electronics devices around the world. Moreover, emergence of machine learning and artificial intelligence has provided new opportunities for development of the semiconductor market.

According to a new report published by Allied Market Research, titled, "Semiconductor Foundry Market, By Node Size, Application and Region" The semiconductor foundry market was valued at $106.94 billion in 2022, and is estimated to reach $231.5 billion by 2032, growing at a CAGR of 8.1% from 2023 to 2032.

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A semiconductor foundry, also known as a semiconductor fabrication plant or fab, is a specialized facility that produces integrated circuits (ICs) or chips on behalf of other companies. Foundries are pivotal players in the semiconductor industry as they offer manufacturing capabilities to companies that design chips but lack their own fabrication facilities. This outsourcing model provides increased flexibility and cost-effectiveness in semiconductor production.

The semiconductor foundry market analysis indicates a promising trajectory, fueled by escalating demand for cutting-edge semiconductor manufacturing services and the proliferation of emerging technologies like AI, IoT, and 5G. The major influence on the semiconductor industry is the continuous progression of process technology, often denoted by its node size. This metric signifies the smallest dimension of a transistor or other crucial component on a semiconductor chip. As the node size diminishes, more transistors can be densely packed onto a single chip, leading to enhanced performance, lower power consumption, and smaller device sizes. This trend towards miniaturization carries broad implications for a variety of applications. For instance, in the world of consumer electronics, smaller and more energy-efficient chips empower devices like smartphones and tablets to offer heightened capabilities while consuming less power, ultimately elevating user experiences.

Furthermore, foundries assume a vital role in propelling innovation and facilitating novel applications across industries. Cutting-edge nodes, such as 7nm or 5nm, hold immense significance for emerging technologies like artificial intelligence, autonomous vehicles, and 5G networks. These applications necessitate chips with robust computational abilities and energy efficiency, qualities attainable through the advanced manufacturing processes provided by foundries. By pushing the boundaries of semiconductor technology, foundries contribute to the creation of revolutionary technologies that reshape industries and enhance the well-being of individuals worldwide. Thus, semiconductor foundries serve as indispensable collaborators in the semiconductor ecosystem, propelling technological advancement through progress in node size and enabling a wide array of applications that impact nearly every facet of modern life.

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The semiconductor foundry market is segmented on the basis of node size, application, and region. By node size, it is divided into 180nm, 130nm, 90nm, 65nm, 45/40nm, 32/28nm, 22/20nm, 16/14nm, 10/7nm, 7/5nm, and 5nm. In 2022, the 7/5nm segment dominated the semiconductor foundry market share, and it is expected to acquire a major market share by 2032. By application, it is segmented into telecommunication, defense and military, industrial, consumer electronics, automotive, and others. In 2022, the consumer electronics segment dominated the semiconductor foundry market size, and it is expected to acquire a major market share by 2032.

Region-wise, the semiconductor foundry market trends are analyzed across North America (the U.S., Canada, and Mexico), Europe (UK, Germany, France, and rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa). For instance, in September 2023, GlobalFoundries announced the official opening of its US$4 billion expansion fabrication plant in Singapore. The expansion fab will produce an additional 450,000 wafers (300mm) annually, raising GF Singapore's overall capacity to approximately 1.5 million wafers (300mm) each year

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KEY FINDINGS OF THE STUDY

The global semiconductor foundry market growth was valued at $106.9 billion in 2022, and is projected to reach $231.5 billion by 2032, registering a CAGR of 8.1% from 2023 to 2032.
The 7/5nm segment was the highest revenue contributor to the market, with $28.7 billion in 2022.
The consumer electronics segment was the highest revenue contributor to the market, with $33.9 billion in 2022.
The telecommunication segment is estimated to reach $56.0 billion by 2032, at a significant CAGR of 6.8% during the forecast period.
North America was the highest revenue contributor, accounting for $46.5 billion in 2022, and is estimated to reach $99.5 billion by 2032, with a CAGR of 7.9%.
Asia-Pacific is estimated to reach $94.4 billion by 2032, at a significant CAGR of 8.2%.

The key players profiled in the report include Globalfoundries Inc., Hua Hong Semiconductor Limited, Intel Corporation, Micron Technology, Inc., Samsung Electronics Co. Ltd, Semiconductor Manufacturing International Corporation (SMIC), Taiwan Semiconductor Manufacturing Company Limited, Texas Instruments Incorporated, United Microelectronics Corporation, and X-FAB Silicon Foundries SE. Market players have adopted various strategies such as product launch, and business expansion to expand their foothold in the semiconductor foundry industry.

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Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.
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