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Total IC foundry sales climbed 14% in 2013

Posted: 28 Jan 2014 ?? ?Print Version ?Bookmark and Share

Keywords:IC Insights? IC foundry? TSMC? GlobalFoundries? UMC?

According to the most recent data from IC Insights, the total IC foundry revenue rose to $42.8 billion in 2013, a 14 percent increase from $37.6 billion in 2012 and eight points more than the six percent increase displayed by the total IC market. Within the total IC foundry market, pure-play foundry sales increased a strong 16 percent to $36.2 billion in 2013.

IC Insights defines a pure-play foundry as a company that does not offer a significant amount of IC products of its own design, but instead focuses on producing ICs for other companies. Major pure-play foundries include TSMC, GlobalFoundries, UMC and SMIC. Meanwhile, integrated device manufacturer (IDM) foundry sales increased two percent to $6.6 billion in 2013. IDM foundries are defined as those companies that offer foundry services in addition to manufacturing their own ICs. Examples include Samsung, IBM and Fujitsu.

Total foundry vs total IC market revenue growth

In 2014, IC Insights forecasts the pure-play foundry market will grow 14 percent to $41.2 billion and once again significantly outperform the total IC market, which is forecast to increase seven percent. IDM foundry sales are forecast to grow three percent to $6.8 billion this year.

On an annual basis, IC Insights anticipates continued revenue growth in the pure-play foundry market throughout the forecast period rising to $64.6 billion in 2018, which amounts to a CAGR of 12 percent from 2013-2018, twice the expected six percent CAGR of the total IC industry, according to the report.

Total foundry vs total IC market revenue growth

Overall, the IDM foundry's most pressing problem is expected to be the ongoing intense competition from the major pure-play foundries, which will be especially evident as Apple begins moving a significant portion of its foundry business from IDM-foundry Samsung to pure-play foundries such as TSMC and/or GlobalFoundries in 2014. Moreover, with IBM concentrating on its specialty RF SOI and SiGe foundry business, IC Insights believes that this leaves only Samsung and Intel as the primary high-volume leading-edge IDM IC foundries in the future, with the extent of Intel's dedication to the foundry business still unclear.

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