News & Events

Global foundry market to surge 20% in 2022, says IC Insights

After dropping 2% in 2019, the global foundry market logged a strong 21% rebound in 2020, driven by sales of application processors and other components for 5G smartphones, according to IC Insights. The foundry market intensified its growth surge in 2021, registering a 26% jump.

IC Insights forecast that the global foundry market will log another 20% on-year increase in 2022. The 2020-2022 time-period would mark the strongest three-year growth span for the market since 2002-2004, IC Insights said.

IC Insights also does not expect another pure-play foundry market decline over the next five years. It is interesting to note that in the past 18 years (2004-2021), the pure-play foundry market grew 9% or less in nine of those years and by double-digit rates in the other nine years.

Nine of the top-12 foundries in 2021 were based in the Asia-Pacific region, IC Insights said. Europe-headquartered specialty foundry X-Fab, Israel-based Tower (now expected to be acquired by Intel), and US-headquartered GlobalFoundries were the only non-Asia-Pacific companies in the top-12 ranking last year.

In 2020, a 25% increase in sales by SMIC was not enough to prevent a decline of the Chinese foundries' share of the total pure-play foundry market to 7.6%, IC Insights noted. In 2021, SMIC's sales jumped by 39% as compared to a total foundry market increase of 26%. Moreover, Huahong Group saw its sales growth rate last year increase at 52%, which was twice the total foundry market rate of 26%. As a result, the Chinese company share of the pure-play foundry market increased by 0.9pp to 8.5% in 2021, according to IC Insights.

IC Insights believes that the total Chinese company share of the pure-play foundry market will remain relatively flat through 2026. China-based firms are forecast to collectively hold 8.8% of the pure-play foundry market in 2026, a level that would be 2.6pp less than their peak share of 11.4% in 2006, IC Insights said.