The global IC foundry industry output value will grow by a CAGR of 5.3% to reach US$75.42 billion in 2024, the final year of a five-year forecast period, driven by chip demand for 5G, AI and HPC applications, according to Digitimes Research.
Unfavorable market conditions, such as the US-China trade war, will likely result in a 3% decline in the global IC foundry industry output value this year, said Digitimes Research. But Digitimes Research believes the global IC foundry market will return to a growth track next year.
The emerging 5G, AI and HPC applications will be stimulating semiconductor demand, while IC foundries continue to enhance their manufacturing capability with process technology advancements and in-house developed 3D IC packaging.
TSMC will continue enhancing its technology leadership over the next five years, while also facing Samsung's rising competitiveness in the foundry sector. On another front, China's SMIC is set to move 14nm FinFET process to volume production in the second half of 2019, and will continue to move forward through government support.
TSMC, Intel and Samsung will be stepping up their 3D-IC packaging R&D to stay competitive in the sub-5nm process segment.
