Apple’s shift in chip manufacturing strategy boosts semiconductor foundry business in 2013

10th August 2013 | By Mouseworld Now Correspondent |

New Delhi, India, August 10, 2013: In an illustration of the massive power it wields in the electronics supply chain, Apple Inc.’s migration of the production of key semiconductors from Samsung to pure-play foundries will single-handedly boost the growth of the chip contract manufacturing market this year.

By the end of the year, pure-play semiconductor foundry market revenue is forecast to rise 21 percent compared to 2012, according to the new IHS report entitled: “Low-Cost Tablet Processor Market Computes New Growth” from information and analytics provider IHS.

In contrast, takings for the overall semiconductor industry will expand by a more staid 5 percent.

The pure-play foundry industry is already on track to achieve such growth this year, with revenue amounting to $8.2 billion in the first quarter, up 4 percent from $7.9 billion in the fourth quarter last year, as shown in the attached figure. In comparison, the overall semiconductor market was down by 5 percent during the same period.

The foundry segment is also believed to have outperformed the rest of the industry in the second quarter when final figures are released, and then go on to perform strongly for the second half.

Pure-play foundries are companies that exclusively perform contract manufacturing of chips for other semiconductor suppliers. Major companies in the pure-play foundry business include Taiwan Semiconductor Manufacturing Co. Ltd. and United Microelectronics Corp.

 

© Mouseworld Now News Service

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