Dublin, Jan. 26, 2024 (GLOBE NEWSWIRE) — The “Semiconductor Foundry Market Size & Share Analysis – Growth Trends & Forecasts (2023 – 2028)” report has been added to ResearchAndMarkets.com’s offering.
Driven by Technological Inflections in IoT, AI, and Cloud Computing – Deep Dive into the Expanding Horizons of the Semiconductor Foundry Landscape The semiconductor foundry market, having attained a remarkable valuation of USD 127.79 billion in the previous accounting period, is now projected to flourish at a compound annual growth rate (CAGR) of 7.67%, culminating in an estimated market size of USD 184.94 billion over the next five years.
This upsurge is predominantly steered by burgeoning technological advancements in the spheres of the Internet of Things (IoT), cloud computing, and artificial intelligence (AI), which form the cornerstone of long-term demand within the chip industry. Specifically, the indispensable role of AI is coming to the fore as it necessitates robust hardware to foster innovation, particularly in key domains such as logic and memory functions.
Projected Growth Supported by Strategic Government Partnerships and Industry Innovations
Strengthened by strategic international alliances, especially noteworthy across South Korea and the United States, the semiconductor foundry market is poised for a significant leap forward. These partnerships complemented by governmental incentives are propelling companies to reveal semiconductor production data conducive to unveiling and mitigating supply chain bottlenecks, while carefully protecting trade secrets. The application of advanced analytics remains a compelling catalyst for operational enhancements and profitability escalation across industries. Despite its clear benefits, the adoption rate of such strategies by semiconductor entities has been notably languid.
IoT Adoption and Connectivity: Primary Drivers of Semiconductor Demand
With high-speed connectivity making strides, alongside burgeoning cloud services and data analytics utilization, IoT presents itself as a sector with steady growth. For example, recent reports by Ericsson highlight a staggering rise in cellular IoT connections, envisaged to soar from 1.9 billion in 2022 to an impressive 5.5 billion by 2027, marking a CAGR of 19%. Concerns hover, however, around diminishing innovation which could indeed temper the enticement for new adopters and possibly slow the momentum of universal chip advancement.
Resilient Market Dynamics Post-COVID-19 Pandemic
The pandemic’s initial onslaught saw reduced capacity usage in semiconductor foundries, fueled by the apprehension of declining chip demands across pivotal sectors, particularly automotive. However, the semiconductor market exhibited considerable growth in the latter stage of 2020 and persisted through 2021, manifested in a glaring supply chain gap incited by escalated demands and the lingering impacts of COVID-19.
Market Highlights: Consumer Electronics and North American Dynamics
Consumer electronics assert dominance in their contribution to end-user industry segmentation for the semiconductor foundry market. The exponential proliferation of consumer electronics – including laptops, smartphones, and wearables – is substantially accentuating the demand for advanced semiconductor technologies. North America, particularly the United States, is set to secure a significant market standpoint perpetuated by its robust semiconductor ecosystem, characterized by fierce competition that fosters innovation and market leadership. Not to mention, recent developments underscore the region’s commitment to bolster semiconductor manufacturing, through substantial investments by leading players including Intel, Samsung, and TSMC.
Competitive Foundry Landscape and Recent Developments
- The semiconductor foundry market witnesses a consolidated arena where key players vie for notable fabless client deals to augment their market presence. Upcoming technological landscapes, such as 5G and IoT, are at the forefront of strategic focus for these manufacturers.
- Recent announcements, such as TSMC’s escalated investment plan in Arizona and GlobalFoundries’ federal funding for advancing semiconductor technologies, underscore the dynamic and proactive nature of the semiconductor foundry market.
This detailed market analysis encompasses a holistic view of current trends, growth catalysts, and potential challenges facing the semiconductor foundry market, presenting invaluable insights for stakeholders and industry aficionados alike.
A selection of companies mentioned in this report includes
- Taiwan Semiconductor Manufacturing Company (TSMC) Limited
- Globalfoundries Inc.
- United Microelectronics Corporation (UMC)
- Semiconductor Manufacturing International Corporation (SMIC)
- Samsung Electronics Co. Ltd (Samsung Foundry)
- Dongbu Hitek Co. Ltd
- Intel Corporation
- Hua Hong Semiconductor Limited
- Powerchip Technology Corporation
- STMicroelectronics NV
- Tower Semiconductor Ltd
- Vanguard International Semiconductor Corporation
- X-FAB Silicon Foundries
- NXP Semiconductors NV
- Renesas Electronics Corporation
- Microchip Technologies Inc.
- Texas Instruments Inc.
For more information about this report visit https://www.researchandmarkets.com/r/nkprjj
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