Semiconductor Foundry Market - Strategic Insights and Forecasts (2025-2030)

Semiconductor Foundry Market Size:

Semiconductor Foundry Market, with a 7.42% CAGR, is projected to increase from USD 152.392 billion in 2025 to USD 218.010 billion in 2030.

A semiconductor foundry or fab, which is also referred to as a semiconductor fabrication plant, is a factory that manufactures but does not design chips and integrated circuits (ICs) for other companies. The semiconductor foundry market is categorised into various segments, which include technology node, application, and geographical location. Rising demand for semiconductor chips and ICs is one of the primary factors driving the growth of the foundry market.

The semiconductor industry is prospering as a result of the high demand for semiconductor chips by consumers. According to the World Semiconductor Trade Statistics database, the market for semiconductor chips is projected to be worth US$600 billion in 2022. Chips and ICs have become essential in many industries, driven by increasing semiconductor content in a variety of products, including vehicles, appliances, computers, and data centres. Most of these companies that design such sophisticated chips do not have the infrastructure to manufacture them, which raises the demand for semiconductor foundries.

The growing adoption of AI, IoT, and cloud-driven devices is driving the demand for semiconductor chips. Moreover, rising government investments to grow and improve semiconductor technology are fueling the expansion of the semiconductor foundry market.

However, the lack of skilled manpower, supply chain complexity, stringent rules and regulations by the government, and the high initial investment are obstructing the growth of the global market during the analysis period.

Semiconductor Foundry Market Growth Drivers:

• During the anticipation period, the rising demand for IoT and AI-enabled devices will support the growth of the global market during the projection period.

Semiconductors play a crucial role in enabling emerging technologies such as IoT and AI. The rising trend of Industry 4.0 has increased the demand for semiconductor chips, expanding the semiconductor foundry market.  Rapid technological progress, rising implementation of cloud technologies, and availability of high-speed internet have spurred the adoption of IoT technology in a wide range of industries. For instance, a report published by Ericsson says, the number of IoT-connected devices grew exponentially in 2021 and was expected to reach 500 million devices by the end of 2022. Sensors are a key component in connected devices, including consumer electronics like smartphones, tablets, and wearables. IoT devices will dramatically boost the need for sensors and integrated circuits since they are unable to function without semiconductors.

Continuous semiconductor product launches, such as AI chips, and IoT modules, are also propelling the demand for foundries. For instance, in October 2022, American tech giant IBM launched its first-ever AI chip for deep learning. The new IBM chip is faster and more efficient in training deep learning models than a general CPU. It is a semiconductor with ASIC design capabilities that can be programmed to do any deep learning activity, including processing spoken language. In January 2023, MediaTek launched its new chipset for IoT-enabled devices. The new semiconductor is an octa-core chip designed for smart homes and industrial IoT devices, which is compatible with the Genio platform.

Various semiconductor foundry companies are collaborating with semiconductor companies to provide them with chip manufacturing and designing services and increase their output. For instance, in December 2022, American technology pioneer IBM and Japanese semiconductor foundry company Rapidus collaborated to form a strategic partnership to develop an advanced semiconductor technology ecosystem in Japan.

Semiconductor Foundry Market Geographical Outlook:

• Asia Pacific is anticipated to hold a significant amount of the semiconductor foundry market share during the forecast period.

Asia Pacific region is anticipated to hold a significant market share in semiconductor foundries. This region will witness high growth during the forecast period owing to the well-established consumer electronics and semiconductor industry in countries such as South Korea, China, and Japan. Rising government investment and initiatives to expand the semiconductor industry in countries such as India, Korea, and China are driving the growth of the market in this region. The Government of India announced in September 2022 that it was planning to invest USD25 billion to expand the Indian semiconductor industry.

In December 2022, Foxconn announced that it would build a semiconductor foundry in Gujarat. The Hon Hai Technology Company, popularly known as Foxconn, is anticipated to construct an approximately USD 20 billion semiconductor manufacturing unit in collaboration with Vedanta Group. The presence of key market players such as TSMC, Samsung Electronics, and Rapidus is also propelling the growth of the semiconductor foundry market in this region. Prime markets in the Asia Pacific region are India, China, Japan, South Korea, Taiwan, Thailand, and Indonesia.

Semiconductor Foundry Market Key Developments:

• November 2025: Samsung reported that its first-gen 2nm GAA process delivers a 5% performance boost and 8% power efficiency gain compared to its second-gen 3nm process.
• November 2025: GlobalFoundries licensed GaN technology from TSMC to accelerate its U.S.-manufactured power portfolio, targeting datacenter, industrial, and automotive customers.
• November 2025: Intel's 18AP process design kit for M-series chips was evaluated by Apple, signaling the potential for a major US-based advanced-node manufacturing partnership.
• April 2025: AMD achieved the first TSMC N2 (2nm) product silicon milestone with its next-gen EPYC CPU, showcasing the maturity of TSMC's advanced node for HPC applications.

List of Top Semiconductor Foundry Companies:

• TSMC Limited
• Globalfoundries Inc
• X-FAB Silicon Foundries
• Semiconductor Manufacturing International Corporation
• United Microelectronics Corporation

Semiconductor Foundry Market Scope:

Semiconductor Foundry Market Segmentation:  

• SEMICONDUCTOR FOUNDRY MARKET BY TECHNOLOGY NODE
  • Smartphones2nm/3nm/4nm/5nm/7nm/10nm
  • 14nm/16nm
  • 20nm/28nm/40nm
  • 45nm/55nm/65nm
  • Others
• SEMICONDUCTOR FOUNDRY MARKET BY APPLICATION
  • Automotive
  • Consumer Electronics
  • Automotive
  • Communication
  • Industrial
  • Aerospace
  • Others
• SEMICONDUCTOR FOUNDRY MARKET BY GEOGRAPHY
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Indonesia
    • Thailand
    • Others