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Foundry sales to have strong growth: IC Insights
By siliconindia
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Monday, 21 September 2009, 19:54 IST
Bangalore: The semiconductor foundry segment is expected to have strong sales growth from 2010 through 2013, according to a latest forecast. By 2013, the total impact of foundry sales will account for nearly one third of all integrated circuit (IC) sales, says IC Insights, a market research firm.
After a projected decline of 16 percent to $17.3 billion in 2009, revenue from pure-play foundries is expected to increase by 25 percent in 2010, reaching $21.7 billion. The total foundry sales, including sales from integrated device manufacturers that allocate a portion of their capacity for foundry work, are projected to be $25.5 billion in 2010, predicts IC Insights.
By 2013, total foundry revenue is expected to rise to nearly $41 billion, including nearly $35 billion from pure-play foundries alone. Total foundry sales are expected to account for 12.1 percent of all IC sales in 2010, according to IC Insights. The total impact of foundry sales - including revenue paid to the foundry and revenue collected by the chip company that sells the part into the market - is expected to account for 26.7 percent of all IC sales in 2010.
IC Insights expects that the total impact of foundry sales will account for 31.2 percent of all IC sales by 2013. "The foundry segment rebounded quickly from the downturn which decimated business in late 2008 and the first part of 2009. Monthly sales at two foundries - Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Corporation (UMC) - have already returned to where they were prior to the financial crisis that emerged last year," said Bill McClean, President of IC Insights.
According to McClean, foundries are really pushing to get higher revenue per wafer, and also scaling back investment in new capacity and equipment. Capital spending outlays by the 'big four' foundries - TSMC, UMC, Chartered Semiconductor Manufacturing and Semiconductor Manufacturing International - are projected to be $3.5 billion in 2009, up one percent from 2008, when their capital spending declined by 31 percent.