Pure-play foundries ramp sales to China

October 09, 2017 // By Peter Clarke
The China market will account for 13 percent of pure-play foundry sales in 2017 and all the major foundries have been increasing their sales into China over recent years, according to market research firm IC Insights.

Not surprisingly Shanghai headquartered Semiconductor Manufacturing International Corp. (SMIC) has been consistent in second place behind TSMC, and other Chinese foundries are also ranked alongside Globalfoundries and United Microelectronics Corp.

In total, pure-play foundry sales in China are expected to increase by 16 percent this year to about $7.0 billion, more than double the rate of increase for the global pure-play foundry market. TSMC is expected to hold a 46 percent share of the Chinese market, up two percentage points from 2016.

Major pure-play foundries ranked by Chinese sales: Source IC Insights.

TSMC, GlobalFoundries, UMC, Powerchip, and, most recently, Tower Semiconductor have announced plans to boost their China-based wafer fabrication production.  Most of these new China-based foundry wafer fabs are scheduled to come online in late 2017 or in 2018.  UMC began 40nm production at its 300mm joint venture China fab in November of 2016 and the company is planning to introduce 28nm technology into the fab in the second half of this year with additional expansion plans to come through the end of the decade.

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