Pure-play foundry market to show 19% growth

September 22, 2020 //By Peter Clarke
Pure-play foundry market to show 19% growth
Despite, or even because of, the Covid-19 pandemic, the pure-play foundry market is set to grow in 2020 at its fastest clip since 2014, according to IC Insights.

The pure-play foundry market is being driven by demand for application processors into 5G smartphones, and is set to expand by 19 percent in 2020, after declining by 1 percent in 2019. In 2014 the pure-play market grew year-on-year by 18 percent.

IC Insights forecasts 200 million 5G smartphone handsets will be shipped in 2020 (although some forecasts expect 250 million units), up from only about 20 million units in 2019.

Pure-play foundries are forecast to represent 81.4 percent of total foundry sales in 2020, down from 89.3 percent in 2014. From 2019 through 2024, pure-play foundry sales are forecast to display a compound annual growth rate (CAGR) of an 9.8 percent, 3.8 points more than the 6.0 percent CAGR displayed from 2014 to 2019 and greater than the 7.3 percent CAGR expected for the total IC market in the same forecast period.

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