Contractual semiconductor production market shows the highest growth since 2014

Contractual semiconductor production market shows the highest growth since 2014

The analysts of IC Insights company have studied the situation on the semiconductor production contract market. The first part of the report, which has already been published, focuses on companies that practically do not manufacture products of their own design, specializing in contract manufacturing. Examples of such companies are TSMC, GlobalFoundries, UMC and SMIC. Samsung and Intel companies that produce under contract in addition to their own products are not included in this part of the report.

According to analysts, the growing demand for processors and other chips for smartphones 5G has led to a market growth of 19% this year net contract production. For comparison, last year this market decreased by 1%. According to the forecasts of IC Insights, in 2020 will be supplied 200 million 5G smartphones (according to some projections – even 250 million), compared with about 20 million in 2019.

If this forecast is justified, the growth will be at the level of 2014, when it was 18%. Prior to 2019, the market for net contract manufacturing was last reduced in 2009 (then the decline reached 9%). IC Insights believes that there will be no new decline in the coming years.

Analysts predict that this year net contract production will account for 81.4% of all semiconductor shipments.

Contractual semiconductor production market shows the highest growth since 2014


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