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Semiconductor foundry market grew 5.1% in 2011

Posted: 02 Apr 2012     Print Version  Bookmark and Share

Keywords:semiconductor foundry  media tablet  research 

The worldwide semiconductor foundry market totalled Rs.1.48 lakh crore ($29.8 billion) in 2011, a 5.1 per cent increase from 2010, according to Gartner Inc. "Thanks to stable media tablet and mobile phone sales, a slide of the semiconductor and foundry revenue in 2011 was prevented," said Samuel Tuan Wang, research director, Gartner.

The semiconductor supply chain suffered from the natural disasters in Japan and Thailand. However, growth in the foundry market would have been 0.7 per cent without the steep depreciation of the US dollar, said the analyst.

"After 40.5 per cent growth from 2009 to 2010, the foundry market maintained relatively flat business in 2011 due to the weakness in PC production and an overall consumer demand hit, as well as a leaner inventory practice by customers that started in mid-2011."

The semiconductor industry globally also continued to consolidate, with the top five players taking almost 80 per cent of market, Wang said.

Top player TSMC grew its share to 48.8 per cent in 2011. Samsung's foundry, with Rs.2,326.73 crore ($470 million) in revenue, ranked No. 9. However, Samsung Electronics had been very aggressively expanding its LSI business in 2011. Had the estimated $1 billion Apple wafer business been included in its foundry revenue, Samsung would rank as high as No. 4 in the foundry ranking. Powerchip had a nearly threefold increase in foundry revenue in one year due to the strategic decision to shift from the commodity DRAM business to foundry in early 2011.


Source: Gartner

Communications, consumer and data processing continued to be the three key applications driving the foundry business; they accounted for 42.7 per cent, 20.9 per cent and 20.3 per cent of the foundry revenue, respectively, in 2011.

Fabless customers contributed 77.8 per cent of the foundry business, integrated device manufacturers contributed 20.2 per cent, and the remaining came from system companies.

By region, America's customers generated 62.8 per cent of the foundry revenue, Asia/Pacific 22.2 per cent, Europe 10 per cent and Japan 4.9 per cent.

"Given the aggressive capital spending by large foundries during 2010 and 2011, the oversupply of foundry capacity was inevitable," said Wang. "The utilisation rate for foundries continued to decline quarter to quarter in 2011, causing the annual average utilisation rate to drop to 81 per cent from 91 per cent in 2010. Advanced technology for mobile applications was the driver for the growth of foundry business in 2011, and the demand is expected to remain high during the next few years."

For more statistics and forecasts, click here.

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