IDC Predicts The Dedicated Foundry Market Will More Than Quadruple To $36B By 2004.As a result of weak financial performances during the 1996-1998 semiconductor recession, the large integrated semiconductor manufacturers are now turning to foundries to outsource semiconductor production at an unprecedented rate. This influx of activity will ignite revenue growth and generate a $36 billion-plus market worldwide by 2004 - up from under $7 billion in 1999, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. IDC. "The surge in strategic outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. by integrated manufacturers is being felt by all major dedicated foundries and will underpin high growth in the merchant foundry A semiconductor manufacturer that makes chips for third parties. It may be a large chip maker that sells its excess manufacturing capacity or one that makes chips exclusively for other companies. business. In fact the rate of value gain is so rapid that foundries seem bound to continue to gain share well into the new century," says Mario Morales
Mario Morales (born 1960), a.k.a. "Quijote Morales", for his ability to conquer both scoring and team championships in the Puerto Rican BSN league, is one of Puerto Rico's most famous , director of Semiconductor research at IDC. "This growth will reshape the future of semiconductor manufacturing, and strategic outsourcing will become a long-term solution to the cost penalties of in-house fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. ." To prepare for the surge in demand, the leading dedicated foundries are initiating ambitious capacity expansion plans and aggressive technology migrations. Because of this aggressive expansion, the dedicated foundries will contend for the top spots in revenue share among the entire semiconductor industry. Foundry-fabricated semiconductors currently account for 12 percent of the market, but this share will more than double to 26 percent by 2004. Three companies - TSMC TSMC Taiwan Semiconductor Manufacturing Company, Ltd TSMC Taiwan Semiconductor Manufacturing Corporation TSMC Traffic Systems Management Center TSMC Toll Station Management Controller TSMC Transportation Supply Maintenance Command TSMC Technical Services Manager Code , UMC UMC United Methodist Church UMC United Microelectronics Corporation UMC University Medical Center UMC United Microelectronics Corp (Republic of China) UMC University of Missouri-Columbia , and Chartered - will benefit the most from this increased share. Collectively, they account for 69 percent of foundry volume today, but their share will increase to 88 percent by 2004. These three companies are in an advantageous position due to their strong technological, manufacturing, and financial capabilities; successful strategic alliances; and aggressive capital investment programs. In addition, they have clustered fabs in locations favored by well-developed assembly industries, high-volume local semiconductor markets, and solid infrastructure. |
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion