Global semiconductor foundry market: 20% CAGR growth expected between 2012-2016

Press release   •   Aug 08, 2013 13:55 BST

The Global Semiconductor Foundry market is to grow at a CAGR of 19.7 percent over the period 2012-2016. One of the key factors contributing to this market growth is the customer's need to restock inventory. The Global Semiconductor Foundry market has also been witnessing an increased adoption of expansion strategies. However, the fluctuating revenue of the Semiconductor market could pose a challenge to the growth of this market.

The Global Semiconductor Foundry market is witnessing an increasing consolidation and strategic alliances between market players, which are expected to continue even in the future. Both existing vendors and new entrants prefer the acquisitive route to either enter the market or broaden their portfolio of offerings. For instance, Hua Hong NEC Electronics and Grace Semiconductor Manufacturing Corp. completed their merger in 2011. In addition, IBM, Global Foundries, and Samsung Electronics Co. Ltd. have formed an alliance in the market. Since the market is highly fragmented and competitive, players are adopting strategies such as alliances, agreements, and mergers to sustain the competition.

One of the main drivers is the restocking of inventory by customers. As the demand for semiconductor devices is increasing, customers are replenishing the stock to keep pace with the current as well as near-future market conditions. For the past few years, this has been one of the major contributing factors to the growth of the market.

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