The pure-play foundry industry will grow 39.5% this year, according to iSuppli, to reach revenues of $24.8bn in a total worldwide semiconductor industry which is expected to approach $300bn.
“Lured by innovative new features and a renewed economy, worldwide consumers again are purchasing electronic products,” says Len Jelinek, chief analyst for semiconductor manufacturing at iSuppli, “unless conditions deteriorate once more, previously pent-up need for new consumer products will fuel foundry demand.”
The $24.8bn foundry revenue this year is up from $17.8bn in 2009 and $19.9bn in 2008.
By 2013, iSuppli forecasts foundry revenue will reach $35.9bn – a CAGR of 12.5%.
So revenue expansion in the foundry business will outperform that of the semiconductor industry in 2010, says iSuppli.
Growth won’t be limited to the leading foundry vendors but will also extend to specialty foundries, which stand to reap benefits as their niche products that are associated with new designs position them for impressive growth.
iSuppli expects more mergers in the foundry industry like those of Globalfoundries and Chartered, and UMC and He Jian Technology.