IC Insights: TSMC Will Remain on Top in 2016

31 Aug

Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s No.1 contract chipmaker, will have a 58 percent share of the global pure-play wafer foundry operating market this year as it retains the top position in that sector, according to a new report by research firm IC Insights. IC forecasts TSMC will post US$28.57 billion in sales for 2016, up 8 percent on an annual basis. Still, TSMC’s market share may fall one percentage point year on year.

GlobalFoundries, United Microelectronics Corp and Semiconductor Manufacturing International Corp. (SMIC) will be the No. 2, No. 3 and No. 4 pure-play wafer foundry makers, respectively. GlobalFoundries is forecast to post US$5.65 billion in sales in 2016, up 12 percent from a year earlier, to take an 11 percent share. UMC is expected to take a 9 percent stake in the world pure-play wafer foundry market with US$4.49 billion in revenue, up 1 percent from a year earlier. SMIC is forecast to take a 6 percent market share with US$2.85 billion in sales, up 27 percent year on year.

According to IC Insights, since Beijing is aggressively developing the domestic semiconductor industry, Chinese contract chip-makers will likely continue to grow their combined market share through 2020. This year, SMIC and its Chinese counterparts are forecast to take an 8.2 percent of the global pure-play wafer foundry market.

IC Insights says Israel’s TowerJazz will record the highest growth among the 10 top contract chipmakers globally this year. The research firm predicts TowerJazz will take a 3 percent share in the world’s contract chip production market in 2016 with US$1.25 billion in sales, an increase of 30% over 2015. TowerJazz’s compound annual growth rate in sales is expected to reach 35 percent from 2013-2016.

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