Semiconductor compounding market will reach 19.7%

ResearchandMarkets recently provided an analysis of their report on “Global Semiconductor Foundry Market 2012-2016”.

One of the main factors to promote market growth is the need for customers to expand their inventory. The global semiconductor foundry market is also witnessing the gradual application of expansion strategies. However, the volatility of semiconductor market revenue will become a challenge for market growth.

Key suppliers that dominate the market include Grooved, SMIC, TSMC and UMC. Other vendors mentioned in the Research and Markets report include Apple, Dongbu HiTek, IBM, Hynix Semiconductor, Powerchip, Samsung Semiconductor, TowerJazz, and Steady Semiconductor.

According to Research and Markets, the global semiconductor foundry market is emerging as a strategic alliance between increasingly consolidating market participants and it will continue in the future. Both existing and new entrants are eager to enter the market or expand their portfolios. For example, Hua Hong NEC Electronics and Grace Semiconductor completed the merger in 2011. In addition, IBM, Greenfield, and Samsung formed an alliance in the market. Because the market is highly fragmented and competitive, participants adopt strategies such as alliances, agreements, and mergers to maintain competition.

One of the major driving forces is that customers need to replenish inventory. Due to the increasing demand for semiconductor devices, customers need to replenish inventory to keep pace with current and future markets. In the past few years, this has been one of the main factors for market growth.