BEIJING, Sept. 14 /Xinhua-PRNewswire/ -- CCID Consulting, China’s leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), announces that it has analyzed and forecasted the global and Chinese foundry market.
I. The Global Market
Since the 1980s, foundry, a unique business in the semiconductor chip manufacturing industry, has maintained a fast growth momentum. In recent years, the global foundry market has been growing even faster. In 2006, it topped $20 billion to reach $23.274 billion. During the 4 years between 2002 and 2006, the market achieved a CAGR of 19.8%, far higher than the growth of the global semiconductor market during the same period.
In the global the foundry market, Pure-play Foundries are currently in a dominant position. During the 4 years between 2002 and 2006, pure-play foundries saw their sales revenues grow at an average annual rate of 22.2%, far higher than the 9.7% average annual growth of Non-pure-play foundries. Correspondingly, pure-play foundries’ shares of sales revenue in the global foundry market have also grown to 84.7% in 2002 from 78.3% in 2006.
Fig. 1 Foundries’ Sales Revenue in the World, 2002-2006 --- By Type
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Source: CCID Consulting, May 2007
Structurally, 300mm and 90 nm production lines and more advanced processes account for a growing percentage of the sales revenue in the overall market, which respectively grew to 19.9% and 18.7% in 2006 from 15.2% and 0 in 2002.
Fig. 2 Structure of Foundry Production Lines’ Sales Revenue in the World,
2002-2006 --- By Dimension
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Source: CCID Consulting, May 2007
Fig. 3 Structure of Foundry Production Lines’ Sales Revenues in the World,
2002-2006 --- By Line Width
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Source: CCID Consulting, May 2007
While market demand grew fast, the global foundry production capacity also grew fast as well. Between 2002 and 2006, the global foundry production capacity expanded 60%, reaching 23.56 pieces/year (converted to 200mm silicon). Of this, the 300mm production capacity accounted for 18%, while 90nm and more advanced processes accounted for 14.5% of the overall production capacity.
Fig. 4 Global Foundry Production Capacity and Actual Output, 2002-2006
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Source: CCID Consulting, May 2007
Note: concerted according to 200mm silicon
In terms of brand structure, the global foundry market is dominated by TSMC, UMC, Charter and SMIC. In 2006, these 4 enterprises accounted for 69.5% of the overall market. Among them, TSMC’s market share is 43.3%.
Table 1 The World’s TOP 10 Pure-play Foundries in 2006
Ranking in Foundries Sales Revenue Growth Rate
2006 ($100 million) (%)
1 TSMC 100.81 22.6 %
2 UMC 27.79 (1.5) %
3 Charter 18.71 65.6 %
4 SMIC 14.36 22.7 %
5 Dongbu/Yanna 4.25 22.5 %
6 Vanguard 3.81 7.6 %
7 HHNEC 3.61 18.4 %
8 SSMC 3.23 11.4 %
9 X-FAB 3.02 45.2 %
10 Hejian 3.01 12.3 %
Source: CCID Consulting, May 2007
II. The Chinese Market
China’s foundry industry originated from the 1990s, through the establishment of CSMC-HJ (now CSMC). But exponential growth started with the establishment and production of a number of foundries including SMIC and Grace in 2001. Statistics show that during the 4 years between 2002 and 2006, sales revenue in China’s foundry industry expanded 6.8 times, reaching a CAGR of 67.2%. In 2006, China’s foundry industry reached a size of 22.059 billion Yuan, accounting for 12% of the global market.
Fig. 5 Sales Revenue and Growth in China’s Foundry Industry, 2002-2006
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Source: CCID Consulting, May 2007
While sales revenue grows fast, China’s foundry production capacity grows even faster. Between 2002-2006, China’s foundry production capacity expanded 1.5 times, reaching 7.17 million pieces/year (converted to 200mm silicon). Its percentage of the global total production capacity already rose 7.2%.
Fig. 6 China’s Foundry Production Capacity and Actual Output, 2002-2006
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Source: CCID Consulting, May 2007
Note: converted according to 200mm silicon
In terms of wafer dimension and line width, foundry production capacities in China are still dominated by 6- & 8-inch and 0.35-0.11 micron process. In 2006, 8-inch wafer and 0.35-0.11 micron process accounted for 53% and 55.7% of the overall production capacity in China. There are very few more advanced processes than the 12-inch and 90nm processes, which account for only 4% and 2.5% of the overall production capacity, respectively.
Fig. 7 Structure of Foundry Production Lines’ Production Capacities in
China, 2002-2006 --- By Dimension
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Source: CCID Consulting, May 2007
Note: converted according to 200mm silicon
Fig. 8 Structure of Foundry Production Lines’ Production Capacities in
China, 2002-2006 --- By Line Width
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Source: CCID Consulting, May 2007
Note: converted according to 200mm silicon
Currently, the main pure-play foundries in China include SMIC, Hua Hong NEC, HeJian, TSMC (Shanghai), ASMC, Grace, CSMC and Shanghai SIM-BCD. In addition, enterprises such as CSWC and Shanghai Belling are currently also engaged in the foundry business.
Table 2 Main Pure-play Foundries in China
Ranking in Foundries Sales Revenues in 2006 Growth Rate
2006 (100 million Yuan) (%)
1 SMIC 113.5 22.7 %
2 Hua Hong NEC 28.48 18.4 %
3 HeJian 23.5 12.3 %
4 ASMC 14.36 58.7 %
5 TSMC (Shanghai) 12.87 234.3 %
6 Grace 12.22 43.1 %
7 CSMC 9.55 55.4 %
8 Shanghai SIM-BCD 5.20 48.6%
Source: CCID Consulting, May 2007
The foreign and Chinese foundry market and industry will continue to maintain fast growth. In the next 5 years, the global foundry market is expected to achieve a CAGR of 11.7%, while sales revenue in China’s foundry industry are expected to grow a CAGR of 17.9%. By 2011, sales revenue in the Chinese foundry industry will reach 50.336 billion Yuan ($6.537 billion), accounting for 15.9% of the global market at the time. By then, China will become an important center for the foundry industry in the world.
Fig. 9 Forecast for Size of the Global and Chinese Foundry Market, 2007-
2011
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Source: CCID Consulting, May 2007
About CCID Consulting
CCID Consulting Co., Ltd. (also known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is a direct affiliate of the China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen and Harbin, with over 300 professional consultants and industry experts. The Company’s business scope has covered over 200 large- and medium-sized cities in China. Apart from home market development, CCID Consulting is establishing international cooperation links across the United States, the Asia-Pacific region and Europe, by setting up agents in the U.S., Japan, South Korea, Australia, Singapore, Italy and Russia, with the aim of going global.
Based on four major competitive areas of powerful data channels, industrial resources, intense knowledge and deep understanding of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategy planning, IT application, marketing strategy, human resources and information technology outsourcing. Our customers range from industrial users in IT, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks.
CCID Consulting is committed to becoming the No. 1 brand for strategy consulting, the No. 1 consultant for enterprise management and the No. 1 expert in market research. For more information, please visit our website at http://en.ccidconsulting.com/ .
For more information, please contact:
Cynthia Liu
Coordinating Manager
CCID Consulting Co., Ltd.
Tel: +86-10-8855-9080
Email: liuyan@ccidconsulting.com
