Foundry revenues are a tenth of semi industry revenues
Foundry represents a tenth of the semiconductor industry, according to Gartner. Last year foundry revenues grew 5% to $29.8bn compared with overall semi revenues of $300bn.
TSMC had 48.8% share of foundry revenues. The five biggest foundries have 80% of the market.
“After 40.5 percent growth from 2009 to 2010, the foundry market maintained relatively flat business in 2011 due to the weakness in PC production and an overall consumer demand hit, as well as a leaner inventory practice by customers that started in mid-2011,” says Gartber’s Samuel Tuan Wang.
SMIC had a bad year with sales down 15%, Tower claimed the No.5 spot up from No.6 in 2010 and Dongbu Hitek fell from No.5 to No.8.
Samsung came in at No.9 with foundry sales of $470m.
Communications accounted for 42.7% of foundry business followed by consumer (21%) and data processing (20%).
Fabless companies had 77.8% of the foundry business and IDMs 20.2%.
US customers accounted for 62.8%, Asia/Pacific 22.2%,, Europe 10% and Japan 4.9%.
“The utilization rate for foundries continued to decline quarter to quarter in 2011, causing the annual average utilization rate to drop to 81% from 91% in 2010,” says Wang.