Taipei, Tuesday, May 5, 2015 09:29 (GMT+8)
rain shower
Taipei
19°C
Greater China IC foundry industry overview
Nobunaga Chai, DIGITIMES Research, Taipei [Monday 24 January 2011]
Registration required (free) to purchase. Please sign in if you wish to continue.
Taiwan's foundry industry will account for an estimated 68.5% of global foundry revenues in 2010. In addition, China will account for 12-13%, bringing the share of Greater China to over 80%. However, the region faces vigorous challenges from industry players such as Samsung Electronics and Globalfoundries, compelling TSMC and UMC to step up their capex for expanding 12-inch wafer capacity and accelerating the pace of R&D. Looking forward, Digitimes Research forecasts that the output value of Taiwan's foundry industry will reach US$22.14 billion in 2013, while the China foundry industry may top US$4.45 billion.
Abstract
Greater China foundries: Revenues and market share, 2007-2011

Digitimes Research estimates that Taiwan's TSMC and UMC ranked first and second worldwide among the world's top 10 foundries in 2010. TSMC's subsidiary Vanguard International Semiconductor also ranked among the top 10.

In addition, Taiwan is home to other foundries such as Episil Technologies, Advanced Microelectronic Products and Maxchip Electronics. Taiwan's foundry industry accounted for an estimated 68.5% of global foundry revenues in 2010. In addition, China accounted for 12-13% of global revenues, bringing the share of Greater China to over 80%.

Of the top 10 semiconductor manufacturers in China, Hynix-STM and BCD Semiconductor Manufacturing are a memory maker and an IDM (Integrated Device Manufacturer), respectively, while the other eight are pure-play foundry players including Semiconductor Manufacturing International (SMIC), Grace Semiconductor Manufacturing (GSMC), Shanghai Hua Hong NEC Electronics (Hua Hong NEC) and Hejian Technology (Suzhou).

While SMIC and GSMC ranked fourth and tenth globally in 2010, China-based foundries tend to be less competitive in cost and are unable to meet demand for leading-edge applications. However, China-based foundries have the advantage of geographical proximity to emerging markets.

Faced with the vigorous challenges of Samsung Electronics and Globalfoundries, TSMC and UMC raised their capital outlay in 2010 for expanding 12-inch wafer capacity and accelerating the pace for the R&D and mass production of cutting-edge technology.

Digitimes Research forecasts that the output value of Taiwan's foundry industry will reach US$22.14 billion in 2013, while the China foundry industry may top US$4.45 billion.

Table of contents
Price: NT$48,000 (approx. US$1,685)
Realtime news
  • Tablet market losing demand

    IT + CE | 11h 22min ago

  • TPK announces 1Q15 financial performance

    Displays | 11h 24min ago

  • Digitimes Research: Taiwan to ship 25.5 million handsets in 2Q15

    Mobile + telecom | 11h 28min ago

  • Transcend 1Q15 sales down, but gross margin up

    Bits + chips | 11h 29min ago

  • GlobalWafers nets NT$1.40 per share for 1Q15

    Green energy | 11h 31min ago

  • iPad shipments expected to decline over 20% in 2015

    Displays | 11h 33min ago

  • Quanta pushing into private cloud solutions for revenue growth

    IT + CE | 11h 42min ago

  • Digitimes Research: April 7W, 9W LED light bulb prices up sequentially, down in China market

    LED | 11h 49min ago

  • China investors near deal to acquire OmniVision

    Bits + chips | 12h ago

  • HTC evaluating plans for smartphone assembly plants in India

    Before Going to Press | 12h 9min ago

  • HTC sees decreased April revenues

    Before Going to Press | 12h 11min ago

  • MediaTek subsidiary completes acquisition of Alpha

    Before Going to Press | 12h 12min ago

  • Ichia Technologies April revenues up on month, down on year

    Before Going to Press | 12h 13min ago

  • Alpha Networks downsizes capital by 10%

    Before Going to Press | 12h 14min ago

  • Casetek sees weak results in 1Q15 due to rising labor costs and delayed orders

    Before Going to Press | 12h 15min ago

  • PC-related IC suppliers cautious about 2Q15

    Before Going to Press | 12h 17min ago

  • LCD makers concerned about panel pricing

    Before Going to Press | 12h 18min ago

Pause
 | 
View more

Taiwan server shipment forecast and industry analysis, 2015

RESEARCH EXTRAS | Apr 10, 15:57

The server market did not perform well in 2014 though rising demand from Internet data centers (IDCs) and China brands helped global shipments (measured by motherboards) grow 7.1% to 10.4 million. Using this as the base for growth, in 2015 the market is expected...

How China is shaping the LTE/TD-LTE market in 2015

CHINA SMARTPHONE | Apr 9, 15:42

Digitimes Research estimates that the global LTE market doubled in size to 445 million users in 2014 and we further forecast that annual growth in the number of LTE users will remain above 70% between 2015-2016, with the overall market reaching 1.466 billion...

Taiwan LCD monitors – 1Q 2015

TAIWAN DISPLAY SYSTEM | Apr 28, 15:25

Taiwan makers' first-quarter 2015 LCD monitor shipments dropped below 20 million units for the first time in almost a decade, as demand continued to be weak.

Taiwan digital cameras – 1Q 2015

TAIWAN MOBILE DEVICE | Apr 28, 10:33

DSCs continue to be cannibalized by smartphones with increasingly better camera functions. Taiwan's DSC makers saw a short-lived rebound in shipments in fourth-quarter 2014, but slipped back to a downward trend in first-quarter 2015.

Taiwan notebooks – 1Q 2015

TAIWAN MOBILE DEVICE | Apr 24, 15:49

The retail market was unable to digest the massive inventory of inexpensive notebooks in first-quarter 2015. The result was drastic drops in orders from vendors for their Taiwan-based ODMs, who were hit by the worst-ever sequential decline in shipments they had...

Taiwan server shipment forecast and industry analysis, 2015
Wireless broadband developments in Southeast Asia markets
Analysis of China revised domestic semiconductor industry goals
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.