Semiconductor Foundry Market Report, Size, Share, Opportunities, And Trends By Technology Node (Smartphones2nm/3nm/4nm/5nm/7nm/10nm, 14nm/16nm, 20nm/28nm/40nm, 45nm/55nm/65nm, Others), By Application (AutomotiveConsumer Electronics, Automotive, Communication, Industrial, Aerospace, Others), And By Geography - Forecasts From 2025 To 2030

Comprehensive analysis of demand drivers, supply-side constraints, competitive landscape, and growth opportunities across applications and regions.

Report CodeKSI061614914
PublishedJun, 2025

Description

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.

Semiconductor Foundry Market Highlights:

  • Increasing demand for semiconductors is driving growth in the foundry market.
  • Growing AI and IoT adoption is boosting need for advanced chip manufacturing.
  • Asia Pacific is leading the semiconductor foundry market with a strong industry presence.
  • Advancing technology nodes are enhancing performance in semiconductor foundry services.
  • Rising government investments are fueling expansion of semiconductor foundry infrastructure.
  • Expanding automotive sector is increasing demand for specialized foundry chips.
  • Strengthening industry collaborations are supporting innovation in semiconductor foundry processes.

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.

A bar chart showing Semiconductor Foundry Market size in USD Billion from 2025 to 20230 with CAGR

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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 foundry. 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 they were 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.

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:

Report MetricDetails
Semiconductor Foundry Market Size in 2025USD 152.392 billion
Semiconductor Foundry Market Size in 2030USD 218.010 billion
Growth Rate7.42%
Study Period2020 to 2030
Historical Data2020 to 2023
Base Year2024
Forecast Period2025 – 2030
Forecast Unit (Value)Billion
SegmentationTechnology Node, Application, Geography
Geographical SegmentationNorth America, South America, Europe, Middle East and Africa, Asia Pacific
List of Major Companies in Semiconductor Foundry Market
  • Intel Corporation
  • Powerchip Technology Corporation
  • Samsung Electronics Co Ltd
  • Tower Semiconductor Ltd
  • Microchip Technologies
Customization ScopeFree report customization with purchase

Semiconductor Foundry Market Segmentation:  

  • By Technology Node
    • Smartphones2nm/3nm/4nm/5nm/7nm/10nm
    • 14nm/16nm
    • 20nm/28nm/40nm
    • 45nm/55nm/65nm
    • Others
  • By Application
    • AutomotiveConsumer Electronics
    • Automotive
    • Communication
    • Industrial
    • Aerospace
    • Others
  • By Geography
    • North America
      • USA
      • Canada
      • Others
    • South America
      • Brazil
      • Others
    • Europe
      • Germany
      • UK
      • France
      • Others
    • Middle East and Africa
      • Israel
      • Others
    • Asia Pacific
      • China
      • Japan
      • South Korea
      • India
      • Taiwan
      • Thailand
      • Indonesia
      • Others

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Page last updated on: September 26, 2025


Frequently Asked Questions (FAQs)

The semiconductor foundry market is expected to reach USD 218.01 billion by 2030, up from USD 152.39 billion in 2025.

The semiconductor foundry market is projected to grow at a CAGR of 7.42% during 2025–2030.

Growth is fueled by rising demand for AI, IoT, and cloud-driven devices, expansion of Industry 4.0, and increasing semiconductor content in electronics and vehicles.

Key restraints include skilled manpower shortages, high initial investment, supply chain complexities, and strict government regulations.

Asia Pacific dominates the market, led by China, Taiwan, South Korea, Japan, and India, driven by government investments and strong electronics demand.

Table Of Contents

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

2. RESEARCH METHODOLOGY  

2.1. Research Data

2.2. Assumptions

3. EXECUTIVE SUMMARY

3.1. Research Highlights

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Market Opportunities

4.4. Porter’s Five Force Analysis

4.4.1. Bargaining Power of Suppliers

4.4.2. Bargaining Power of Buyers

4.4.3. Threat of New Entrants

4.4.4. Threat of Substitutes

4.4.5. Competitive Rivalry in the Industry

4.5. Industry Value Chain Analysis

5. SEMICONDUCTOR FOUNDRY MARKET ANALYSIS, BY TECHNOLOGY NODE

5.1. Introduction

5.2. 2nm/3nm/4nm/5nm/7nm/10nm

5.3. 14nm/16nm

5.4. 20nm/28nm/40nm

5.5. 45nm/55nm/65nm

5.6. Others 

6. SEMICONDUCTOR FOUNDRY MARKET ANALYSIS, BY APPLICATION

6.1. Introduction

6.2. Consumer Electronics

6.3. Automotive 

6.4. Communication 

6.5. Industrial

6.6. Aerospace 

6.7. Others 

7. SEMICONDUCTOR FOUNDRY MARKET ANALYSIS, BY GEOGRAPHY

7.1. Introduction

7.2. North America 

7.2.1. USA

7.2.2. Canada

7.2.3. Mexico

7.3. South America 

7.3.1. Brazil

7.3.2. Argentina

7.3.3. Others

7.4. Europe 

7.4.1. UK

7.4.2. Germany

7.4.3. France

7.4.4. Italy

7.4.5. Others

7.5. Middle East and Africa 

7.5.1. Saudi Arabia

7.5.2. UAE

7.5.3. Others

7.6. Asia Pacific 

7.6.1. China

7.6.2. Japan

7.6.3. India

7.6.4. South Korea

7.6.5. Taiwan 

7.6.6. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Emerging Players and Market Lucrativeness

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Vendor Competitiveness Matrix

9. COMPANY PROFILES

9.1. TSMC Limited 

9.2. Globalfoundries Inc

9.3. X-FAB Silicon Foundries

9.4. Semiconductor Manufacturing International Corporation

9.5. United Microelectronics Corporation

9.6. Intel Corporation

9.7. Powerchip Technology Corporation

9.8. Samsung Electronics Co Ltd

9.9. Tower Semiconductor Ltd

9.10. Microchip Technologies 

Companies Profiled

TSMC Limited

Globalfoundries Inc

X-FAB Silicon Foundries

Semiconductor Manufacturing International Corporation

United Microelectronics Corporation

Intel Corporation

Powerchip Technology Corporation

Samsung Electronics Co Ltd

Tower Semiconductor Ltd

Microchip Technologies  

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