iSuppli Predicts Strong Year for Semiconductor Foundries

Paul Lilly

It's shaping up to be a great year for semiconductor foundries, says market research firm iSuppli, which predicts that revenue will reach $29.8 billion by the end of 2010. If it does, that will represent a 42.3 percent increase from last year, when revenue settled in at $22.1 billion.

Semiconductor foundries are adjusting to the growing demand for consumer products, following a rough recession in which spending slowed way down starting in 2008. The landscape is decidedly different now, however, and iSuppli says foundries will likely spend 123 percent more on capital equipment this year than they did in 2009.

China, which hasn't expanded aggressively as it should have and hasn't come up with many technological advancements, has forfeited its role as a leader in contract manufacturing, a position which now belongs to Taiwan, iSuppli added.

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