Foundry Market Set to Grow as AI and Advanced Packaging Drive Demand
The global foundry industry is on a steady growth path, projected to expand from $125.56 billion in 2023 to $171.70 billion by 2032, according to a new report from Credence Research. The firm indicates that a 3.99% compound annual growth rate (CAGR) underscores the increasing demand for precision metal casting and semiconductor fabrication across key sectors such as automotive, aerospace, and industrial machinery.
For eeNews Europe readers, this trend signals critical developments in semiconductor manufacturing, packaging, and localized chip production. All are key areas shaping the electronics supply chain and innovation landscape in Europe and beyond.
AI, advanced nodes, and geographic shifts
The foundry market’s expansion is fueled by rapid adoption of artificial intelligence (AI), high-performance computing (HPC), and next-generation communication technologies. As we have reported, demand for AI accelerators, GPUs, and 5G chipsets is pushing foundries to ramp up capacity and migrate toward advanced process nodes such as 3 nm and 2 nm.
At the same time, foundries are investing heavily in heterogeneous integration and chiplet-based architectures to boost efficiency and flexibility for AI workloads. Advanced packaging technologies — including 3D stacking and wafer-level integration methods like CoWoS and InFO — are also gaining traction, allowing for denser, more energy-efficient chip designs.
Governments are playing noticeable roles in reshaping the global foundry landscape. The US, China, and EU member states are offering large-scale subsidies to localize semiconductor manufacturing and reduce dependence on overseas fabs. Europe’s own Chips Act aims to reinforce this strategy by supporting projects in Germany, France, and Italy, particularly in automotive-grade semiconductors and IIoT applications.
Competition and Emerging Opportunities
Credence Research notes a moderately consolidated competitive landscape dominated by major players such as TSMC, Samsung, and GlobalFoundries. Smaller foundries continue to find success in mature nodes and specialized markets like automotive and industrial electronics. Foundries that successfully integrate digitalization and sustainability practices are likely to gain a competitive edge, the report highlights.
Automation and digital foundry technologies — including AI-driven quality control, 3D sand printing, and predictive maintenance — are improving yield and energy efficiency while reducing waste. As energy costs rise and regulations tighten, sustainability has become a strategic priority.
Looking ahead, there should likely be many opportunities in high-performance computing, edge AI, and data center applications. Foundries that align with regional incentives and invest in advanced materials and digital manufacturing could be well positioned to capture future growth.
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