The demand for semiconductor foundries has increased in recent years owing to the increasing complexity and demand for electronic devices, as well as companies' shift towards outsourcing semiconductor manufacturing. The increasing complexity of integrated circuits demands the use of specialized manufacturing equipment and processes, which can be costly for organizations to invest in. In addition, the electronics industry's rapid pace of technological change and short product life cycles make it difficult for companies to maintain their own semiconductor manufacturing capabilities. Outsourcing to semiconductor foundries can be a low-cost way for businesses to gain access to advanced manufacturing technologies and expertise, thereby fueling the market growth. For instance, in August 2022, GlobalFoundries, a semiconductor design and manufacturing company, announced the extension of its partnership with Qualcomm Technologies, Inc., a provider of semiconductors and wireless technology services, to secure wafer supply to support U.S.-based manufacturing by expanding capacity at GlobalFoundries advanced semiconductor manufacturing plant in New York, U.S.
The semiconductor industry has grown increasingly globalized, with organizations seeking to take advantage of the resources and experience of manufacturers across various regions. Hence, many organizations undertake various initiatives such as partnerships, mergers, and acquisitions as semiconductor foundries provide a convenient way to gain access to manufacturing capabilities in various parts of the world. For instance, in July 2022, Intel Corporation, a U.S based semiconductor chip manufacturer, announced a partnership with MediaTek Inc., a provider of semiconductor chips for tablet computers, wireless communication, and navigation systems, to manufacture semiconductor chips using advanced process technologies of Intel Foundry Services. The partnership is intended to support MediaTek in developing a more resilient and balanced supply chain by adding a new foundry partner with significant capacity in Europe and the U.S.
Semiconductor foundry manufacturers are constantly investing in specialty technologies such as radio frequency, analog, and high-voltage to meet the unique demands of automotive and Internet of Things (IoT) applications. Additionally, by developing smaller process nodes, market players are constantly pushing the boundaries of semiconductor technology. More transistors can be packed onto a single chip, improving performance and lowering power consumption, allowing end-users to deploy semiconductor chips in new, innovative, and compact products.
Semiconductor Foundry Market Segmentation
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By Technology
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By Application
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Automotive
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Consumer Electronics
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Industrial
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Healthcare
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Others
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Key players
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Taiwan Semiconductor Manufacturing Company Limited
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Samsung Foundry
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United Microelectronics Corporation
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GlobalFoundries
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SMIC
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Tower Semiconductor
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Powerchip Semiconductor Manufacturing Corp.
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Vanguard International Semiconductor Corporation
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Hua Hong Semiconductor Limited
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DB HITEK
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Intel Corporation