Figure 1
With the recent rise of the fabless IC companies in China, the demand for foundry services has also risen in that country. In total, pure-play foundry sales in China jumped by 26% last year to $7.5 billion, almost triple the 9% increase for the total pure-play foundry market. Moreover, in 2018, pure-play foundry sales to China are forecast to surge by an amazing 51%, more than 6x the 8% increase expected for the total pure-play foundry market this year.
Although all of the major pure-play foundries are expected to register double-digit sales increases to China this year, the biggest increase by far is forecast to come from pure-play foundry giant TSMC. Following a 44% jump in 2017, TSMC’s sales into China are forecast to surge by another 79% in 2018 to $6.7 billion. As a result, China is expected to be responsible for essentially all of TSMC’s sales increase this year with China’s share of the company’s sales more than doubling from 9% in 2016 to 19% in 2018.
