The 2024-29 CAGR is projected to reach 10%. This growth is catalysed by the continuous rise in AI demand and a gradual recovery in non-AI demand.

TSMC leverages its technological edge in advanced nodes below 5nm and advanced packaging CoWoS, securing robust orders for AI accelerator manufacturing. With utilisation consistently at full load, TSMC is expected to expand its market share in the Foundry 2.0 market to 37% in 2025.

The rebound in demand for consumer electronics—such as smartphones, PCs, notebooks, TVs, and wearables—has driven a projected 4% average increase in utilization for mature nodes. This resurgence fuels a significant expansion of the overall foundry market, expected to grow by 18% in 2025.

IDMs specializing in automotive and industrial sectors—such as Infineon, Texas Instruments, STMicroelectronics, and NXP—have completed inventory adjustments. However, market demand is expected to remain weak in the first half of 2025, with stabilisation projected for the second half. Collectively, these factors limit the overall non-memory IDM sector to a modest growth of 2% in 2025.

The Outsourced Semiconductor Assembly and Test OSAT sector is benefiting from IDMs increasing outsourcing to foundry due to advanced nodes demands, shifting packaging and testing needs to OSAT vendors.

While traditional packaging and testing businesses remain lukewarm, the strong demand for AI accelerators has spurred a rise in advanced packaging orders. Vendors such as SPIL (under ASE), Amkor, and KYEC are actively taking on more CoWoS-related orders, collectively driving the overall OSAT industry to an expected growth of 8% in 2025.

By: DocMemory
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