The semiconductor foundry market achieved a new record of growth in the last year. According to an IDC survey, in 2022, the segment expanded by 27.9% compared to 2021, but forecasts for the coming quarters are not equally positive. Analysts believe that the sector could shrink by around 6.5% in 2023.
TSMC continues to lead in semiconductor foundry with 55.5% market share based on last year data. Samsung has a 16% share, followed by UMC, with 6.8%. According to IDC, the top 10 companies in the segment saw double-digit percentage growth between 2021 and 2022.
The positive records of the main companies in the segment can be justified by current trends in the technology industry, that is, the demand for hardware capable of processing artificial intelligence and high-performance computing applications.
Integrated circuit companies stocked parts until the 1st half of 2022, and with the signing of long-term agreements, the price of semiconductors remained high, and the production capacity utilization of the largest foundries reached more than 90%.
Manufacturers are expected to go through shortages and stock replenishment in the 2nd half of 2023, so analysts project that the semiconductor market will suffer a slight drop this year. The industry should return to normality in mid-2024, according to experts’ forecasts.
“There is still solid demand for semiconductors and it is expected that after the supply chain has spent more than a year in shortages, the subsequent order planning will move from negative to stable and conservative,” said Galen Zeng, Senior Manager Asia-Pacific Semiconductor Research Center.
The gradual increase in orders from wafers with 5, 4 and 3 nanometer lithography should guarantee a period of solid income for TSMC in 2023. The Taiwanese company achieved a great growth in market share between 2021 and 2022, jumping from 53.1% to 55.5%. The expectation is that the market share keep expanding throughout this year.
Currently, the semiconductor market leader is finalizing the construction of its second factory in the United States, which will be located in the state of Arizona. Together, both TSMC facilities in the US country are expected to produce 600,000 wafers per annum. The opening of the new unit is expected to take place in 2024.
TSMC, dominating half of the semiconductor industry, faced greater competition from the Chinese. In view of the sanctions imposed by the United States, China needed to stimulate domestic chip production, so that combined local smelters jumped from 7.4% to 8.2% of market share between 2021 and 2022.
In addition to the Asian power, the European Union is also starting to outline strategies for the development of its semiconductor industry. European parliamentarians foresee an investment of around 43 billion euros for the local production of chips.
