Foundry sales growth slows

Price competition among foundries in 28, 40 and 65nm nodes remains strong.

Growth in semiconductor foundry sales slowed in 2015 amid a decline in overall semiconductor sales.

Total foundry revenue amounted to $48.8 billion in 2015, an increase of just 4.4 percent over 2014, according to market research firm Gartner. The sector was only able to achieve cumulative growth because of high wafer demand from Apple and revenue from a handful of integrated device manufacturers that also do foundry work, Gartner said.

Foundry sales had increased consistently by double-digit percentages in the years leading up to 2015. In 2014, the market expanded by 16 percent.

Gartner estimates that total semiconductor revenue declined by 2.3 percent in 2015 to settle at $334.8 billion. It attributes the decline to excess IC inventory, poor demand for mobile products and PCs, and slowing tablet sales.

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