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Worldwide foundry sales to top US$100 billion in 2021

Total foundry sales this year will surpass the US$100-billion mark for the first time, and continue increasing at a strong 11.6% average annual growth rate through 2025 when total foundry sales are expected to reach US$151.2 billion, according to IC Insights.

Robust demand for advanced processors used in networking and data center computers, new 5G smartphones, and ICs used in other high-growth market applications such as robotics, self-driving vehicles and driver-assist automation, artificial intelligence (AI), machine-learning and image recognition systems, are forecast to lift total foundry sales to US$107.2 billion in 2021, a 23% increase that would match the record growth rate set in 2017, IC Insights said.

IC Insights noted that the strong growth rate in 2017 was primarily due to Samsung re-classifying its System LSI internal transfers as foundry sales, rather than strong organic market growth.

The pure-play foundry market is forecast to expand by a strong 24% to US$87.1 billion in 2021, which would surpass the 23% growth witnessed in the market just last year, IC Insights indicated. The pure-play foundry market is expected to grow to US$125.1 billion in 2025, resulting in a 5-year (2020-2025) CAGR of 12.2%, accounting for 82.7% of total foundry sales in 2025 compared to 81.2% in 2021.

TSMC, UMC and several specialty foundries are poised to post healthy sales growth this year, IC Insights said. The suppliers are also investing heavily in new capacity to support anticipated demand for their services during the forecast period.

Samsung, whose external sales are primarily driven by customers like Qualcomm, accounts for most of the IDM foundry market. IC Insights forecast that the IDM foundry market will grow 18% to US$20.1 billion in 2021, and reach US$26.1 billion in 2025 resulting in a 5-year CAGR of 9%.

On another front, IDC in its recent report forecast that the semiconductor market will grow by 17.3% in 2021 versus 10.8% in 2020. The industry will see normalization and balance by the middle of 2022, with a potential for overcapacity in 2023 as larger scale capacity expansions begin to come online towards the end of 2022, IDC said.

IC shortages are expected to continue easing through the fourth quarter of 2021 as capacity additions accelerate, IDC noted. Front-end manufacturing has started to meet demand in the third quarter, while larger issues and shortages remain in back-end manufacturing and materials.

By DIGITIMES

Link:https://www.digitimes.com/news/a20210922VL204.html?mod=3&q=IC

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