Demand will include chips for networking, data centers, 5G smartphones, and automotive applications but also more generally. IC Insights expect strong growth to persist with the market showing an average compound annual growth rate of 11.6 percent over the period 2020 to 2025. In that year IC Insights expects total foundry sales to exceed $150 billion.
IC foundry sales forecast. Source: IC Insights
The pure-play part of the market will show the stronger growth in 2021 with a 24 percent growth to achieve $87.1 billion. The pure-play foundry market is expected to grow to $125.1 billion in 2025, resulting in a CAGR of 12.2 percent over the same period.
Samsung, whose external sales are primarily driven by customers such as Qualcomm, accounts for most of the IDM foundry market. IC Insights anticipates the IDM foundry market will grow by 18 percent in 2021 to reach $20.1 billion. The IDM foundry market is forecast to increase to $26.1 billion in 2025, resulting in a five-year CAGR of 9.0 percent.
Intel launched its IDM 2.0 initiative in March 2021 as part of an effort to turn around its IC manufacturing after falling behind TSMC and Samsung in sub-10nm process technologies (see Intel to build two wafer fabs, be foundry for Europe ). Intel plans to make use of third-party foundries for the most advanced process technologies – at least in the short term – while turning itself into a provider of foundry services.
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