Apple’s Shift in Chip Manufacturing Strategy Boosts Semiconductor Foundry Business

Photo Credit: CDRinfIn an illustration of the massive power it wields in the electronics supply chain, Apple’s migration of the production of key semiconductors from Samsung to pure-play foundries will single-handedly boost the growth of the chip contract manufacturing market this year. 

By the end of the year, pure-play semiconductor foundry market revenue is forecast to rise 21 percent compared to 2012, according to an IHS report. In contrast, takings for the overall semiconductor industry will expand by a more staid 5 percent. 

The pure-play foundry industry is already on track to achieve such growth this year, with revenue amounting to $8.2 billion in the first quarter, up 4 percent from $7.9 billion in the fourth quarter last year. In comparison, the overall semiconductor market was down by 5 percent during the same period. 

The foundry segment is also believed to have outperformed the rest of the industry in the second quarter when final figures are released, and then go on to perform strongly for the second half. Read More