News Article
The foundry sector is in for a difficult time in 2005
Due to weak demand and a slowdown in semiconductor manufacturing outsourcing activities, the pure-play semiconductor foundry industry in 2005 is expected to suffer a decline in revenue
Due to weak demand and a slowdown in semiconductor manufacturing outsourcing activities, the pure-play semiconductor foundry industry in 2005 is expected to suffer a decline in revenue, marking the first year that overall chip business growth will exceed the expansion of the foundry market.
Global pure-play foundry industry revenue will decline by 6.2% in 2005, falling to US$15.9 billion, down from US$16.95 billion in 2004we predict. In contrast, the overall worldwide semiconductor industry, including both foundry and non-foundry chipmakers, is on track to achieve modest sales growth of 6.1% in 2005, with revenue rising to US$241.1 billion, up from US$227.2 billion in 2004.
This represents a major turnabout for the foundry business, which in recent years has expanded at a significantly faster rate than the semiconductor market as a whole. For example, pure-play foundry revenue rose by 35.5% in 2004, compared to a 24% expansion for the overall semiconductor industry. Semiconductor industry growth has never exceeded that of the pure-play foundry business before.
Global pure-play foundry industry revenue will decline by 6.2% in 2005, falling to US$15.9 billion, down from US$16.95 billion in 2004we predict. In contrast, the overall worldwide semiconductor industry, including both foundry and non-foundry chipmakers, is on track to achieve modest sales growth of 6.1% in 2005, with revenue rising to US$241.1 billion, up from US$227.2 billion in 2004.
This represents a major turnabout for the foundry business, which in recent years has expanded at a significantly faster rate than the semiconductor market as a whole. For example, pure-play foundry revenue rose by 35.5% in 2004, compared to a 24% expansion for the overall semiconductor industry. Semiconductor industry growth has never exceeded that of the pure-play foundry business before.
