2014-01-31 04:51:01 - Global Semiconductor Foundry Market 2012-2016 - a new market research report on companiesandmarkets.com
The Global Semiconductor Foundry market is to grow at a CAGR of 19.7 percent over the period 2012-2016. One of the key factors contributing to this market growth is the customer´s need to restock inventory. The Global Semiconductor Foundry market has also been witnessing an increased adoption of expansion strategies. However, the fluctuating revenue of the Semiconductor market could pose a challenge to the growth of this market.
The Global Semiconductor Foundry market is witnessing an increasing consolidation and strategic alliances between market players, which are expected to continue even in the future. Both existing vendors and new entrants prefer the acquisitive route to either enter the market or broaden their portfolio of offerings. For instance, Hua Hong NEC Electronics and
Grace Semiconductor Manufacturing Corp. completed their merger in 2011. In addition, IBM, Global Foundries, and Samsung Electronics Co. Ltd. have formed an alliance in the market. Since the market is highly fragmented and competitive, players are adopting strategies such as alliances, agreements, and mergers to sustain the competition.
One of the main drivers is the restocking of inventory by customers. As the demand for semiconductor devices is increasing, customers are replenishing the stock to keep pace with the current as well as near-future market conditions. For the past few years, this has been one of the major contributing factors to the growth of the market.
One of the major challenges in this market is the fluctuating revenue of the Semiconductor industry. The major reason for this fluctuating revenue is the fluctuating demand for the products in this industry. Moreover, the inconsistency in the order levels of products is likely to lead to altering revenue, thus hampering profit margins for semiconductor foundries. The Semiconductor market has frequently experienced such downturns, thus impacting the Semiconductor Foundry market. In addition, excessive inventory with customers is another factor for these fluctuations.
The key vendors dominating this space include GlobalFoundries Inc., Semiconductor Manufacturing International Corp., Taiwan Semiconductor Manufacturing Co. Ltd., and United Microelectronics Corp.
The other vendors mentioned in this report are Apple Inc., Dongbu HiTek Co. Ltd., IBM Microelectronics, Magnachip Semiconductor Corp., Powerchip Technology Corp., Samsung Semiconductor Inc., Tower Semiconductor Ltd. (TowerJazz), Vanguard International Semiconductor Corp., and WIN Semiconductors Corp (GaAs).
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