Foundry service: Key market research findings
- Emergence of advanced consumer products drives market growth
- Communications segment account for a major part of the market’s revenue
- Key vendors – Taiwan Semiconductor Manufacturing, Global Foundries, United Microelectronics, Semiconductor Manufacturing International, and Samsung Semiconductor
Technavio’s market research analysts predict the global foundry service market to grow at a CAGR of around 7% between 2016 and 2020. The growth of this market can be accredited to the emergence of advanced consumer products in the market. Consumer electronics manufacturers and application developers are attempting to take technological advancements to new heights by interconnecting all household devices and creating a single unit called a smart home. In 2015, the global foundry service market was dominated by the Americas with a market share of almost 65%. The market in the Americas is expected to showcase considerable growth during the forecast period owing to the presence of several leading semiconductor fabless companies like Broadcom, NVidia, and Qualcomm in the region.
The new market research report from Technavio presents a breakdown and analysis of the foundry service segments based on the end-user.
“Automation of automobiles is a trend that is slowly taking over the market. Leading automobile manufacturers such as Toyota, Audi, and Mercedes have invested considerably in the R&D of automobile automation. Semiconductor content plays a key role in automobile automation, especially in the field of networked communication and driving automation. Next-generation automobiles are expected to include features such as speech recognition, video and image compatibilities, and IC-integrated LED front lighting to provide optimal driving experience,” says Sunil Kumar Singh, Lead Analyst, Hardware & Semiconductor, Technavio Research.
Currently, the communications segment accounts for more than 57% of the global foundry service market to become the key revenue generating end-user vertical. The growth of this market segment is fueled by the increased adoption of communication devices such as smartphones and tablets. Vendors such as Samsung Electronics and Apple are bringing out innovative products that are strategically priced. Such strategies by vendors in the market are fueling the demand for smartphones and tablets in the market.
The key vendors in the global foundry service market include Taiwan Semiconductor Manufacturing, Global Foundries, United Microelectronics, Semiconductor Manufacturing International, and Samsung Semiconductor. The global semiconductor foundry market consists of players that are adopting new technologies to gain a competitive edge over other players. The market is fragmented with the presence of a large number of pure-play vendors. Most of these vendors such as GlobalFoundries provide a wide range of semiconductor solutions to high-tech customers across the globe.
A more detailed analysis is available in the Technavio report, Global Foundry Service Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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