Semiconductor Foundry Industry to Undergo Major Shifts by 2030, Report Finds

A new report from Yole Group, titled Status of the Semiconductor Foundry Industry, details significant changes expected in the semiconductor foundry sector by 2030, driven by geopolitical, economic, and capacity dynamics. The report projects a 4.3% compound annual growth rate (CAGR) in foundry capacity from 2024 to 2030, with mainland China expected to lead, capturing 30% of global foundry capacity by 2030, up from 21% in 2024.

The U.S. accounts for 57% of global wafer demand but controls only 10% of foundry capacity domestically, relying heavily on foundries in Taiwan, Japan, and mainland China. Taiwan, holding 23% of global capacity, supplies much of the U.S. fabless ecosystem through companies like TSMC, UMC, and VIS, despite representing just 4% of wafer demand. South Korea balances its 19% share of both capacity and demand, primarily through Samsung.

Mainland China’s capacity growth, despite its 5% share of global wafer demand, is notable, with much of its capacity foreign-owned or used for open foundry services. Utilization rates in China remain below the global average of 70...