Foundry market set to recover

1 min read

After three quarters of contraction, the foundry industry is set to enjoy robust growth in the second quarter, says market watcher iSuppli. But it also wonders how long will the good times last for?
Global foundry revenue is set to rise to $3.6bn in the second quarter, up 59.3% from $2.2billion in Q1. This was 38.2% less that in the previous quarter.

"The foundry market in the second quarter is benefitting from both a major reduction in semiconductor inventories throughout the electronics supply chain and innovative new designs requiring innovative technology," said, iSuppli director Len Jelinek, the company's principal analyst for semiconductor manufacturing. "However, while this growth will come as a relief to the foundries, it will not result in 2009 being a growth year for the foundry industry. Sustainable semiconductor growth will come only when the global economy recovers and consumers return to more normal patterns of purchases." According to Jelinek, the foundry market's 'disastrous' performance in Q1 was reflected in the weak results of the Top 10 players, nine of which saw double digit percentage declines in revenue on a sequential and on a year on year basis. Chartered Semi outperformed the foundry market, says iSuppli, by limiting its year on year sales decline to 43.4% Market leader TSMC, meanwhile, saw its revenues drop by 60% on a year on year basis. Nevertheless, it still retains 49% of global foundry business. "Although 2009 will continue to be a challenging year for pure-play foundries," Jelinek concluded, "those companies that took aggressive actions in the second half of 2008 to prepare for the future will emerge with increased market share and financial strength."