Semiconductor Foundry Market Forecasts to 2030 – Global Analysis by Foundry Type (Pure Play Foundry and Integrated Device Manufacturers (IDMs)), Technology Node (7 nm, 5 nm, 3 nm, 14 nm, 22 nm, 45 nm, 65 nm and 90 nm & Above), End User and By Geography

Semiconductor Foundry Market Forecasts to 2030 – Global Analysis by Foundry Type (Pure Play Foundry and Integrated Device Manufacturers (IDMs)), Technology Node (7 nm, 5 nm, 3 nm, 14 nm, 22 nm, 45 nm, 65 nm and 90 nm & Above), End User and By Geography

According to Stratistics MRC, the Global Semiconductor Foundry Market is accounted for $139.8 billion in 2024 and is expected to reach $235.7 billion by 2030, growing at a CAGR of 9% during the forecast perio. A specialized manufacturing facility that creates semiconductor devices is called a semiconductor foundry. Foundries specialize in creating chips using designs supplied by customers, who are usually fabless businesses or integrated device manufacturers (IDMs). These facilities build circuits on silicon wafers using sophisticated techniques.

According to the Semiconductor Industry Association (SIA), global semiconductor industry sales reached $556.5 billion in 2021, marking a significant 26.2% increase from the 2020 total of $440.4 billion.

Market Dynamics:

Driver:

Rising demand for electronics

The semiconductor foundry market is experiencing robust growth driven by escalating demand for advanced electronic devices across multiple sectors. Consumer electronics, automotive, telecommunications, and computing industries are increasingly requiring sophisticated semiconductors for emerging technologies like 5G, artificial intelligence, and Internet of Things (IoT). The proliferation of smart devices, autonomous vehicles, and high-performance computing systems is creating unprecedented demand for cutting-edge semiconductor manufacturing capabilities.

Restraint:

High capital investment

The market faces significant barriers due to extraordinarily high capital requirements for establishing and maintaining advanced manufacturing facilities. Constructing state-of-the-art semiconductor fabs demands massive financial investments, typically reaching several billion dollars. These expenses encompass sophisticated machinery like photolithography machines, advanced etchers, and complex deposition tools necessary for producing chips at advanced node sizes such as 5 nm or 3 nm. The continuous technological upgrades and infrastructure maintenance further escalate these substantial financial challenges.

Opportunity:

Increased government support

Governments worldwide are increasingly recognizing the strategic importance of semiconductor manufacturing, leading to substantial support and investment initiatives. The United States, European Union, and other nations are allocating significant funds to develop domestic semiconductor production capabilities. For instance, the US CHIPS Act and the EU's plan aim to reduce dependence on foreign suppliers and strengthen national technological competitiveness. These initiatives create promising opportunities for semiconductor foundries to expand their manufacturing infrastructure.

Threat:

Raw material shortages

Global semiconductor foundries face potential threats from raw material supply chain disruptions. Geopolitical tensions, trade restrictions, and concentrated manufacturing in specific regions like Asia Pacific can create vulnerabilities in obtaining critical semiconductor manufacturing components. The COVID-19 pandemic highlighted these supply chain fragilities, demonstrating how external factors can rapidly impact material availability. Ongoing trade tensions between major economies like the United States and China further complicate raw material procurement strategies.

Covid-19 Impact:

The COVID-19 pandemic dramatically transformed the semiconductor foundry landscape. Initial supply chain disruptions caused manufacturing delays and component shortages. However, the increased demand for electronic devices due to remote work and digital transformation created unprecedented market opportunities. The shift towards wireless communication and digital infrastructure accelerated semiconductor adoption. Despite initial challenges, the industry demonstrated resilience, with demand for advanced chips in consumer electronics, telecommunications, and computing sectors experiencing significant growth.

The pure play foundry segment is expected to be the largest during the forecast period

The pure play foundry segment is expected to be the largest during the forecast period. Pure play foundries focus exclusively on manufacturing chips for other companies without competing with their customers by designing their own chips. This specialization allows them to attract a wide range of clients and invest heavily in advanced manufacturing processes, driving their market dominance.

The 5 nm segment is expected to have the highest CAGR during the forecast period

The 5 nm segment is expected to have the highest CAGR during the forecast period. The 5 nm process node represents cutting-edge semiconductor technology, offering significant improvements in performance and energy efficiency. As demand grows for more powerful and efficient chips in applications like AI, 5G, and high-performance computing, the 5 nm segment is poised for rapid growth.

Region with largest share:

Over the forecasted timeframe, the Asia Pacific region is anticipated to dominate the market share. Countries like Taiwan, South Korea, and China have established themselves as global semiconductor manufacturing hubs. The region benefits from well-developed supply chains, established foundries like TSMC and Samsung, and significant infrastructure investments. Advanced manufacturing capabilities, a robust ecosystem, and strategic government support contribute to the region's overwhelming market leadership.

Region with highest CAGR:

North America is projected to experience the highest growth rate during the forecast period. The region is actively working to decentralize semiconductor manufacturing and reduce dependence on Asian suppliers. Significant investments through initiatives like the CHIPS Act, coupled with strong technological innovation and substantial funding, are driving semiconductor foundry expansion. Companies like Intel are making substantial investments in domestic manufacturing capabilities, positioning North America for accelerated growth in the semiconductor foundry market.

Key players in the market

Some of the key players in Semiconductor Foundry Market include Taiwan Semiconductor Manufacturing Company, Samsung, GlobalFoundries, United Microelectronics Corporation, Semiconductor Manufacturing International Corporation, Intel Foundry Services, Hua Hong Semiconductor, Tower Semiconductor, Dongbu HiTek, Powerchip Semiconductor Manufacturing, Vanguard International Semiconductor Corporation, X-FAB Silicon Foundries, Nexchip, STMicroelectronics, NXP Semiconductors, Renesas Electronics, Texas Instruments, and IBM Microelectronics.

Key Developments:

In October 2024, OpenAI is working with Broadcom and TSMC to build its first in-house chip designed to support its artificial intelligence systems, while adding AMD chips alongside Nvidia chips to meet its surging infrastructure demands, sources told Reuters. OpenAI, the fast-growing company behind ChatGPT, has examined a range of options to diversify chip supply and reduce costs. OpenAI considered building everything in-house and raising capital for an expensive plan to build a network of factories known as ""foundries"" for chip manufacturing.

In October 2024, GlobalFoundries (GF) has been awarded $35 million in federal funding from the U.S. government to accelerate the manufacturing of GF’s differentiated gallium nitride (GaN) on silicon semiconductors at its facility in Essex Junction, Vermont. This funding brings GF closer to large-scale production of GaN chips, which are unique in their ability to handle high voltages and temperatures. These chips are positioned to enable game-changing performance and efficiency in 5G and 6G cellular communications for infrastructure and handsets, automotive and industrial Internet of things (IoT), as well as power grids and other critical infrastructure.

In January 2024, Intel Corp. and United Microelectronics Corporation a leading global semiconductor foundry announced that they will collaborate on the development of a 12-nanometer semiconductor process platform to address high-growth markets such as mobile, communication infrastructure and networking. The long-term agreement brings together Intel’s at-scale U.S. manufacturing capacity and UMC’s extensive foundry experience on mature nodes to enable an expanded process portfolio.

Foundry Types Covered:
• Pure Play Foundry
• Integrated Device Manufacturers (IDMs)

Technology Nodes Covered:
• 7 nm
• 5 nm
• 3 nm
• 14 nm
• 22 nm
• 45 nm
• 65 nm
• 90 nm and Above

End Users Covered:
• Consumer Electronics
• Automotive
• Industrial
• Healthcare
• Aerospace
• Communication
• High Performance Computing (HPC)
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances