Pure-play foundries' growth is at the leading-edge

September 28, 2016 // By Peter Clarke
Despite discussion within the industry of More-than-Moore manufacturing as the new mainstream it is at the leading edge of 28nm and below that growth is going to be found in 2016, according to IC Insights.

The market for pure-play foundry supplied wafers at 40nm and larger geometry nodes is going to be flat in 2016 at $29.3 billion compared with $29.2 billion in 2015, the market researcher forecasts.

Pure-play foundry market by leading and trailing parts and 2015 versus 2016. Source: IC Insights.

Sales of ICs built using lower than 40nm process technology is forecast to rise 23 percent at pure-play foundries to reach $19.5 billion. This clearly favors pure-play foundries that can service the leading edge such as market and technology leader TSMC.

In 2016 54 percent of TSMC's revenue is expected to come from <40nm processing. For Globalfoundries the sales to come from <40nm production is forecast to be 52 percent.

Pure-play foundry sales by feature size. Source: IC Insights.

However, in this leading-edge category TSMC is six times larger than Globalfoundries with 2016 sales in category of $15.6 billion compared with $2.6 billion for Globalfoundries. This provides TSMC with 80 percent of the leading-edge pure-play foundry production. This is down from the 84 percent TSMC enjoyed in 2014 (see TSMC to grab 84% of leading-edge pure-play foundry market ).

The pure-play market is forecast to grow from $45.1 billion in 2015 to $48.8 billion, an increase of 8.2 percent.

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