Gartner Research

Forecast Overview: Semiconductor Foundry Services, Worldwide, 2017

Published: 25 May 2017

ID: G00325801

Analyst(s): Samuel Wang


The increase in demand for application-specific chips, higher content in smartphones and more outsourcing by IDMs will trigger mid-single-digit growth in the foundry industry from 2017 through 2020. Technology strategic planners at foundries need to win business from IDMs and system houses.

Table Of Contents
  • Overview
  • Companion Documents

Market Description

  • The Increasing Role of the Foundry in the Semiconductor Industry
  • Foundry Growth Has Been From Mobile Devices and Integrated Device Manufacturer (IDM) Conversion
  • ASICs and ASSPs as Chip Drivers of Foundry Growth
  • Foundry Wafer Pricing
  • Advanced Technologies Require Massive Investments in Foundry Fabs
  • Foundry Capacity Expansion on 300 mm Wafers
  • Concentrated Foundry Suppliers
  • Stratification of Market Into Three Tiers

Foundational Assumptions

  • Foundry Supply-and-Demand Balance by Technology
  • End-Market Demand
  • IDMs Become Fab Lite or Fabless
  • Supply Sufficiency
  • Foundry Pricing and Profitability
  • Foundry Capacity by Technology
  • Technology Roadmap

Market Model or Methodology

  • Forecast Components
    • Foundry Shipment Forecast
    • Foundry Wafer ASP Forecast
    • Foundry Revenue Forecast
  • Demand-Side Influencing Factors
    • Macroeconomy
    • Consumer Spending
    • Enterprise Budgets and Spending
    • Business Strategies and Objectives
    • Channel Demand and End-Market Demand
    • Electronic Equipment Production
    • IDMs Become Fab Lite or Fabless
    • IDM/Fabless Market Share Change
  • Supply-Side Influencing Factors
    • Foundry Capital Spending
    • Fab Equipment and IP Lead Times
    • Wafer Capacity by Technology
    • Technology Roadmap
    • Capacity Utilization
    • Foundry Profitability
    • Wafer Cost Structure
    • IDM Becomes New Foundry
    • More ASICs Designed by System Companies
  • Sufficiency Influencing Factors
    • Foundry Supply
    • Foundry Demand
    • Foundry Inventory
    • Foundry Sufficiency

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