Semiconductor foundry market to grow at a CAGR of 7.74% by 2027: North America is estimated to account for 40% of the growth – Technavio

NEW YORK, Dec. 7, 2023 /PRNewswire/ — According to Technavio, the global semiconductor foundry market size is estimated to grow by USD 42,781.83 million from 2022 to 2027. The market is expected to grow at a CAGR of 7.74% during the forecast period. Moreover, the growth momentum will accelerate. Based on geography, the global semiconductor foundry market is segmented into North America, APAC, Europe, South America, and Middle East and Africa. The report provides actionable insights and estimates the contribution of all regions to the growth of the global semiconductor foundry market. North America is estimated to account for 40% of the growth of the global market during the forecast period. This growth is primarily attributed to factors such as high sales. The region has some of the leading semiconductor fabless companies. In addition, most of the customers in the global market are from North America. The US is the key contributor to the revenue growth of the market in the region owing to supportive government initiatives. The report includes historic market data from 2017 to 2021. In 2017, the semiconductor foundry market was valued at USD 80,183.69 million. The report provides a comprehensive analysis of growth opportunities at regional levels, new product launches, the latest trends, and the post-pandemic recovery of the global market. For more insights on market size, request a sample report.

Semiconductor foundry market – Five forces

The global semiconductor foundry market is fragmented, and the five forces analysis covers– 

Bargaining power of buyers The threat of new entrantsThreat of rivalryBargaining power of suppliersThreat of substitutesFor an interpretation of Porter’s five forces model – Buy the report!

Semiconductor foundry market – Customer landscape 

The report includes the market’s adoption lifecycle, from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Semiconductor foundry market – Segmentation assessment

Segment overview

Technavio has segmented the market based on type (pure-play foundries and IDMs) and application (communications, pcs/desktop, consumers, automotive, and others). 

The pure-play boundaries segment will account for a significant share of the market’s growth during the forecast period. This growth is attributed to factors such as high economies of scale that allow pure-play foundries to focus on new process technologies. An increase in the construction of fabs globally, a rise in spending by the pure-play foundries, and a low level of competition faced by pure-play foundries from new entrants will also drive the segment’s growth.

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Semiconductor foundry market – Market dynamics
Key factor driving market growth

The evolution of 3D printing is driving market growth.3D printing can be used in many industries, such as medical, aerospace, and automotive.It can also be used to manufacture Printed circuit boards (PCB).For instance, Taiwan Semiconductor Manufacturing Co. Ltd. and Intel are trying to use 3D printing to manufacture semiconductors.3D printing is an ideal option for foundries that produce components requiring high-value and low-volume production.Such factors are expected to drive the global market during the forecast period.

Leading trends influencing the market 

The growth of advanced analytics in semiconductor foundries is a key trend in the market.Companies are focusing on the potential benefits of big data.Big data can help foundries collect large amounts of data and solve problems.The manufacturing process can get simplified with the use of advanced analytics, with can helps fabs make informed decisions.Advanced analytics can also help fabs identify new business models and techniques that provide additional value.Such factors will support the global market growth during the forecast period.

Major challenges hindering market growth

High fluctuations in semiconductor demand are challenging market growth.Products that use semiconductors include mobile devices, computers, consumer electronics, automotive goods, and telecommunication equipment.However, the demand for these products keeps fluctuating, which will impact the semiconductor market.Excess production capacity, obsolete products, and rapid price erosion of ICs drastically affect the market.High fluctuations can often lead to excess inventory levels during low demand and low inventory levels during high demand.These factors will hinder the global market growth during the forecast period.

Drivers, trends, and challenges have an impact on market dynamics, which can impact businesses. Find more insights in a sample report!

What are the key data covered in this semiconductor foundry market report?

CAGR of the market during the forecast periodDetailed information on factors that will drive the growth of the semiconductor foundry market between 2023 and 2027Precise estimation of the size of the semiconductor foundry market and its contribution to the parent marketAccurate predictions about upcoming trends and changes in consumer behaviorGrowth of the semiconductor foundry market across North America, APAC, Europe, South America, and Middle East and AfricaA thorough analysis of the market’s competitive landscape and detailed information about vendorsComprehensive analysis of factors that will challenge the growth of semiconductor foundry market vendors

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TOC

Executive SummaryMarket LandscapeMarket SizingHistoric Market SizeFive Forces AnalysisMarket Segmentation by TypeMarket Segmentation by ApplicationCustomer LandscapeGeographic LandscapeDrivers, Challenges, and TrendsCompany LandscapeCompany AnalysisAppendix

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Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio