"Global Foundry Market Size Expected to Decrease by 4% Compared to Last Year"

TrendForce, Market Sales Size Forecast for This Year

[Asia Economy Reporter Kim Pyeonghwa] This year, the global foundry (semiconductor contract manufacturing) market revenue is projected to decrease by 4% compared to the previous year. Due to the semiconductor industry downturn, order demand is expected to decline across all foundry processes, not only in advanced processes but also in mature processes.

On the 19th, market research firm TrendForce released a foundry market report with this outlook. TrendForce stated, "Foundry companies are expected to maintain low utilization rates in the first and second quarters," adding, "In some processes, demand could sharply decrease in the third quarter."

Global Foundry Market Size Trends Including This Year's Forecast /
[Image provided by TrendForce]

In the second half of the year, some orders may recover due to semiconductor inventory adjustments within the market. However, since the global economic downturn, which significantly affects demand, is expected to continue through this year, TrendForce forecasts that the recovery of foundry companies' utilization rates will not happen quickly.

Additionally, geopolitical risks are increasing their influence. TrendForce noted, "Recently, a geographical reorganization has occurred across the supply chain. The foundry market is also becoming increasingly regionalized," and predicted, "The overall market's utilization rate recovery will be influenced not only by seasonal patterns and customer inventory levels but also by the geographical distribution of order demand within the supply chain."