Standstill in sight for 2005 foundry revenues

The pure-play foundry market increased by 45 percent in 2004, while total IC market grew by 28 percent, according to the market research group.

In terms of individual players, TSMC retained its commanding lead, with sales in 2004 of $7.6 billion, an increase of 31 percent, with the next major player, UMC, achieving just half of TSMC sales, at $3.9 billion. These in turn were more than three times Chartered’s 2004 sales, which, despite an impressive 52 percent increase over the previous year, were just $1.1 billion.

IC Insights also gave its projected foundry rankings for 2005.(See chart below)

Meanwhile, IC Insights believes the ‘big three’ pure play foundries have now morphed into the ‘big four’, China-based SMIC having grown by 166 percent in 2004 sales to $975 million.

In contrast, the largest integrated device manufacturer (IDM) IC foundry, IBM, saw sales dip by 1 percent to $780 million, and now has only 10 percent of the turnover of TSMC.

The next four places for 2004 sales are taken up by Vanguard ($474 million, up 66 percent); TI ($470 million, up 21 percent); Korea’s DongbuAnam ($435 million, up 32 percent) and relative newcomer MagnaChip, with sales of $400 million.

IC Insights suggests TSMC will retain a 47 percent share of the $16.92 billion forecasted market in 2005, an increase of 3 percent to $7.88 billion, with UMC taking 19 percent, a drop of 17 percent, and suggests SMIC, with sales of $1.27 billion overtaking Chartered for third spot, who will take a 6 percent overall share.

None of the other 14 foundries mentioned will enjoy more than a 2 percent share of the total market, with Chinese start-up Grace seeing the largest change, up 58 percent on 2004 sales to $300 million.

In fact IC Insights estimates that Chinese players’ share of the IC foundry market will increase from 12 percent last year to 20 percent by 2009.

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