Global Semiconductor Industry Trends and Foundry Capacity Deployment

Global Semiconductor Shipment Value to Grow 10.4% to Over US$610 Billion in 2022

As the supply crunch of semiconductors continues in 2022, foundries and OSAT service providers are striving to expand production capacity. Although it is expected the shortage will be eased by 2023, governments around the world have acknowledged the strategic importance of the semiconductor industry and have started to promote the development of local and regional supply chains.

This report provides an overview of the development of the global semiconductor market and three Taiwanese three semiconductor sub-industry sectors; looks into the development of regional semiconductor supply chains and the deployment of major stakeholders such as foundries like Samsung, TSMC, and UMC, chipmakers like Samsung, Intel, and Micron, and analog/auto semiconductor suppliers like Infineon, NXP, and STMicro.

List of Topics

• Development of the global and Taiwan semiconductor industry, touching on their market value for the period 2015-2022.
• Key incidents affecting the industry's supply chains such as chip shortage, the ongoing U.S.-China and Russia-Ukraine conflicts, China's dual control policy, and the impact on the automotive chip industry is also included.
• Development of regional semiconductor supply chains, including global foundry production capacity share by the major supplier and the capacity expansion plan of individual countries such as the U.S., China, Korea, Europe, and Japan, and of IDMs (Infineon, Intel, Samsung, etc), and foundries (TSMC, Powerchip, VIS, SIMC, GlobalFoundries, etc.)
• Deployment of major foundries, touching on production capacity with breakdown by product type (analog IC/discrete/foundry/logic IC/memory/microprocessor/MEMS/photonic) and by region; wafer capacity share by process nodes (12&rd, 8&rd, and other advanced nodes)
• Overall deployment of leading brands such as Samsung, Intel, and TowerJazz; leading memory manufacturers such as Samsung, Intel, Micron, SK Hynix, Kioxia, Western Digit, and Nanya; leading analog/auto semiconductor manufacturers such as Infineon, NXP, STMicroelectronics, Renesas, Rohm, TI, and Onsemi; leading Chinese foundries such as SMIC, Hua Hong, ASMC, Nexchip, YMTC, and CXMT.
• Deployment of four leading foundries in Taiwan, including TSMC, UMC, PSMC, and VIS, and includes a monthly capacity of their fabs and their deliverables.

The analyst announced on June 15 at the 2022 Spring Forum held online from June 15-27 that global semiconductor shipment value will top over US$613.5 billion in 2022, up 10.4% year-on-year. The analyst also predicts that the shipment value of the Taiwanese semiconductor industry will reach NT$4.36 trillion (US$149.8 billion; US$1 = NT$29.1) and grow 17.5% year-on-year, higher than the global average. The industry's growth in 2021 was attributed mainly to the chip shortage during COVID-19. The growth momentum is expected to continue well into 2022 due to the spike in chip prices and longer lead-times.

Taiwan Semiconductor Industry Shipment Value, 2015-2022

When it comes to individual sectors, the shipment value of the IC manufacturing industry sector is projected to witness up to 25% year-on-year growth in 2022 and reach NT$2.2 trillion (US$75.6 billion), said Kai-an Cheng, senior industry analyst. "The growth is attributed mainly to the increase in chip prices in the first half of 2022 and the inclusion of new capacity."