Foundry revenue gains to outperform semiconductor industry gains in 2010 – 5/12/2010 – EDN
Things are looking up – way up – for foundries. With foundry revenue expected to grow by nearly 40% in 2010, revenue expansion in the foundry business is forecast to outperform that of the semiconductor industry this year.
The forecast expects pure-play foundry revenue to reach $24.8 billion this year, up from $17.8 billion in 2009 and up 24.6% from 2008 levels of $19.9 billion. By 2013, iSuppli said it expects foundry revenue will reach $35.9 billion with a CAGR (compound annual growth rate) of 12.5%.
Earlier this month, iSuppli estimated semiconductor industry revenue will rise 30.6% from 2009’s $229.9 billion to $300.3 billion in 2010.
“Lured by innovative new features and a renewed economy, worldwide consumers again are purchasing electronic products,” said Len Jelinek, director and chief analyst for semiconductor manufacturing at iSuppli, in a statement. “Unless conditions deteriorate once more, previously pent-up need for new consumer products will fuel foundry demand, iSuppli believes.”
ISuppli noted that growth won’t be limited to the leading foundry vendors but will also extend to specialty foundries.
The market research company reminded that GlobalFoundries in 2009 purchased Chartered Semiconductor Manufacturing, a move that is expected to make the combined company the new number 2 player in the pure-play foundry market by the end of 2010.
The acquisition, said iSuppli, is just the beginning of the buying season among foundries. ISuppli expects a number of new deals to occur in 2010, some of which already have been announced, including the agreement UMC and He Jian Technology Co. Ltd.
The research company also sees several Tier 2 foundries examining the need to expand capacity. As many IDMs (integrated device manufacturers) look to offload manufacturing facilities in order to cut costs, many buyers could end up waiting for product