Foundries Target China

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With the share of the pure-play foundry market going to China on the rise, foundries are increasing their manufacturing presence there, according to IC Insights.

Dylan McGrath, EE Times, Oct. 06, 2017 – 

SAN FRANCISCO - China is expected to account for 13 percent of sales for the world's pure-play chip foundries in 2017, up from 12 percent last year, as the country's fabless semiconductor activity continues to accelerate, according to market research firm IC Insights.

Pure play foundry sales in China are expected to reach $7 billion in 2017, up 16 percent from 2016, according to IC Insights. The growth rate is more than double the overall growth rate for global pure play foundry sales, the research firm noted.

TSMC is forecast to hold about 46 percent of the market for China's pure play foundry sales with sales of about $3.2 billion, up 10 percent from 2016, IC Insights said.

Most pure-play foundries - including TSMC, GlobalFoundries, UMC, Powerchip and TowerJazz - have made plans to locate or expand IC production in mainland China over the next few years, IC Insights noted. Most of these fabs in China are scheduled to begin production late this year or next year, IC Insights said.

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