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Global IC foundry sales seen to grow until 2018

Posted: 09 Dec 2014 ?? ?Print Version ?Bookmark and Share

Keywords:IC? foundry? The Foundry Almanac?

Global revenues from integrated circuit (IC) foundry will rise to 13 per cent this year to a new record-high level of $47.9 billion after increasing 13 per cent last year and 18 per cent in 2012, according to the new 2015 edition of The Foundry Almanac, a jointly produced annual report by the Global Semiconductor Alliance (GSA) and market research firm IC Insights.

The seventh edition of The Foundry Almanac forecasts IC foundry sales to grow 12 per cent to reach $53.7 billion in 2015.

Foundry-made IC products are on track to account for 37 per cent of total worldwide IC sales in 2014 compared to 24 per cent in 2009 and 21 per cent in 2004. By 2018, foundry-made ICs will represent 46 per cent of the industry's total integrated circuit revenues, based on the forecast. The new report shows total sales of foundry-made ICs increasing at a compound annual growth rate (CAGR) of nearly 11 per cent between 2013 and 2018. This is more than double the projected CAGR for total IC industry sales in the five-year forecast period of the report.

Total IC foundry sales

Currently, about 88 per cent of contract wafer-processing sales are generated by pure-play IC foundries with 12 per cent coming from integrated device manufacturers (IDMs) that provide foundry services to other companies. The pure-play foundry portion of dollar volumes is expected to exceed 90 per cent in the next two years, according to the GSA-IC Insights jointly produced report, which includes IC Insights' forecast and analysis of foundry revenues by end-use applications, region and process technology generations as well as rankings of suppliers, capital spending projections and findings from worldwide wafer- and mask-pricing surveys conducted by the GSA.

Among key conclusions and highlights in The 2015 Foundry Almanac are:

  • Pure-play foundry sales are forecast to increase 13 per cent in 2015 to $47.8 billion after climbing 17 per cent in 2014 and 15 per cent in 2013. Meanwhile, IDM foundry revenues are projected to grow just 2 per cent in 2015 to $5.9 billion following a decline of 12 per cent in 2014 and a 2 per cent increase in 2013.
  • Capital expenditures by IC foundries (pure-play and IDMs) are on track to grow by about 9 per cent in 2014 to a record-high $23.2 billion compared to the previous peak of $21.3 billion in 2013, which was just a 3 per cent increase from 2012. Foundry capital spending is forecast to grow 7 per cent in 2015 to set another record high of $24.8 billion.

  • Wafer-fab utilisation at the four largest pure-play IC foundries will increase to an estimated 92 per cent in 2014 compared to 89 per cent in 2013 and 88 per cent in 2012.

  • Fabless customers are estimated to account for 77 per cent of pure-play foundry revenues in 2014 with IDMs representing 18 per cent and systems makers being about 8 per cent of total sales. In 2008, the sales split was 69 per cent to fabless customers, 29 per cent to IDMs and 2 per cent to systems companies.

  • Communications ICs represented an estimate 53 per cent of pure-play foundry sales in 2014, followed by consumer-product ICs at 18 per cent, "other" ICs (for such applications as automotive, industrial and medical systems) at 15 per cent and computer ICs at 14 per cent of the total revenue.

  • Customers based in the Americas will account for nearly 62 per cent of pure-play foundry sales in 2014, followed by Asia-Pacific customers at 29 per cent, Europe at 6 per cent, and Japan at just 4 per cent of the total.

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