KirkLindstrom.com - Articles - 2012 Blog - Semiconductor Chip Foundry Revenue and Rankings for 2010 and 2011
Kirk Windsurfing at Palo Alto in SF Bay in May 2009
 2011 Semiconductor Chip Foundry Revenue
Semiconductor Chip Foundry Revenue & Rankings for 2010 and 2011 		Kirk Windsurfing at Coyote Point November 2009

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March 30, 2012:  The worldwide semiconductor foundry market totaled US$29.8 billion in 2011, a 5.1% increase from 2010, according to Gartner.  However, without the steep depreciation of US currency, foundry growth in 2011 would have been just 0.7%, Gartner said.

"Thanks to stable media tablet and mobile phone sales, a slide of the semiconductor and foundry revenue in 2011 was prevented," said Samuel Tuan Wang, research director at Gartner. "After 40.5% growth from 2009 to 2010, the foundry market maintained relatively flat business in 2011 due to the weakness in PC production and an overall consumer demand hit, as well as a leaner inventory practice by customers that started in mid-2011."

The top five foundry players accounted for almost 80% of the foundry market share.
Fabless customers contributed 77.8% of the foundry business, IDMs contributed 20.2%, and the remaining came from system companies. By region, America's customers generated 62.8% of the foundry revenues, Asia/Pacific 22.2%, Europe 10% and Japan 4.9%.
"Given the aggressive capital spending by large foundries during 2010 and 2011, the oversupply of foundry capacity was inevitable," Wang continued. "The utilization rate for foundries continued to decline quarter to quarter in 2011, causing the annual average utilization rate to drop to 81% from 91% in 2010. Advanced technology for mobile applications was the driver for the growth of foundry business in 2011, and the demand is expected to remain high during the next few years."
Three of the top ten saw revenues decline in 2011.

Gartner: Top 10 foundry firms revenues and market share, 2010-11 (US$m)

2011 Rank

2010 Rank

Company

2010 sales

2010 market share

2011 sales

2011 market share

Y/Y

1

1

TSMC

13,332

47.1%

14,533

48.8%

9.0%

2

2

UMC

3,824

13.5%

3,604

12.1%

(5.8%)

3

3

GlobalFoundries

3,520

12.4%

3,580

12.0%

1.7%

4

4

SMIC

1,554

5.5%

1,319

4.4%

(15.1%)

5

6

TowerJazz

509

1.8%

613

2.1%

20.4%

6

8

IBM Microelectronics

500

1.8%

545

1.8%

9.0%

7

7

Vanguard International

505

1.8%

516

1.7%

2.2%

8

5

Dongbu HiTek

512

1.8%

483

1.6%

(5.7%)

9

10

Samsung*

390

1.4%

470

1.6%

20.5%

10

19

Powerchip Technology

149

0.5%

431

1.4%

189.3%



Top 10 for 2011

24,795

87.6%

26,094

87.7%

5.2%



Others

3,510

12.4%

3,660

12.3%

4.3%



Total Market

28,305

100.0%

29,754

100.0%

5.1%

*Note: Samsung revenues do not include ASIC business from Apple

Note 1.  Source: Source: Gartner, compiled by Digitimes, March 2012
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