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CCID: Foundry market to continue rapid growth

Posted: 19 Sep 2007 ?? ?Print Version ?Bookmark and Share

Keywords:global foundry market? China foundry market? 90nm?

The global foundry market will continue to maintain fast growth in the next five years, with China set to play a pivotal role as it emerges to become an important center for the foundry industry, reported CCID Consulting Co. Ltd.

According to the market firm, the global foundry market will hit a CAGR of 11.7 percent, while sales revenue in China's foundry industry will grow to 17.9 percent CAGR. By 2011, sales revenue in the China foundry industry will reach $6.537 billion, accounting for 15.9 percent of the global market.

Rapid growth
In 2006, the global foundry market reached $23.274 billion, growing at a CAGR of 19.8 percent from 2002. The market achieved a far higher than the growth than the global semiconductor market during the same period, said CCID.

Pure-play foundries dominate the global segment, with revenues for 2002-2006 growing at 22.2 percent, compared to the 9.7 percent average annual growth of non-pure-play foundries. Correspondingly, pure-play foundries' shares of sales revenue in the global foundry market hit 84.7 percent.

Structurally, 300mm and 90nm production lines and similar advanced processes accounted for a growing percentage of the sales revenue in the overall market, which respectively grew to 19.9 percent and 18.7 percent in 2006, up from 15.2 percent and 0 in 2002.

Simultaneous with the fast growth of market demand, the global foundry production capacity also grew rapidly. Between 2002 and 2006, the global foundry production capacity expanded 60 percent, reaching 23.56 pieces/year (converted to 200mm silicon). Of this, the 300mm production capacity accounted for 18 percent, while 90nm and more advanced processes accounted for 14.5 percent of the overall production capacity.

Companies dominating the global foundry arena are TSMC, UMC, Charter and SMIC. In 2006, the four enterprises accounted for 69.5 percent of the overall market. Among them, TSMC achieved a market share of 43.3 percent.

China market
Between 2002 and 2006, sales revenue in China's foundry industry expanded 6.8 times, reaching a CAGR of 67.2 percent, reported CCID. In 2006, China's foundry industry reached a size of $2.9 billion, accounting for 12 percents of the global market.

While sales revenue grows fast, China's foundry production capacity grows even faster. Between 2002-2006, China's foundry production capacity expanded 1.5 times, reaching 7.17 million pieces/year (converted to 200mm silicon). Its percentage of the global total production capacity went up 7.2 percent.

In terms of wafer dimension and line width, foundry production capacities in China are still dominated by 6- and 8-inch and 0.35-0.11?m process. In 2006, 8-inch wafer and 0.35-0.11?m process accounted for 53 percent and 55.7 percent of the overall production capacity in China. More advanced nodes than the 12-inch and 90nm processes accounted for only 4 percent and 2.5 percent of the overall production capacity, respectively.

Currently, main pure-play foundries in China include SMIC, Hua Hong NEC, HeJian, TSMC (Shanghai), ASMC, Grace, CSMC and Shanghai SIM-BCD. Moreover, enterprises such as CSWC and Shanghai Belling are currently engaged in the foundry business.

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