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Foundry Revenue Expected to Reach New High in 2021
Global foundry revenue expected to reach new high in 2021 with close to 6% YoY growth as capacities remain scarce across industry, says TrendForce...
www.eetasia.com, Dec. 30, 2020 –
Global foundry revenue is expected to reach US$84.6 billion in 2020 by undergoing a 23.7% YoY growth, which is the highest % growth in nearly 10 years, according to TrendForce 's latest investigations. This performance took place on the backs of several developments, including OEMs' aggressive inventory procurement brought about by the COVID-19 pandemic and the "new normal" involving WFH and distance education in 1H20. The second half of the year, on the other hand, saw U.S. sanctions tilting forward Huawei's component demand, as well as the increased penetration rate of 5G smartphones and increased 5G base station build-outs.
TrendForce has made the following three assumptions regarding foundry demand in 2021: First, pandemic-induced demand for networking products and from the stay-at-home economy will persist somewhat due to uncertainties in the vaccine's efficacy and side effects. Second, the China-U.S. trade war will remain unresolved. Finally, the global economy will recover in 2021 after the yearlong downturn in 2020. The demand for components will likely rise thanks to not only a forecasted 2-9% growth in the smartphone, server, notebook computer, TV, and automobile markets next year, but also the continued rollout of next-generation networks, including 5G base stations and WiFi 6 technologies. Therefore, the foundry industry is expected to reach its highest revenue ever by growing 6% YoY in 2021.
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