Semiconductor Foundry Market Outlook:
Semiconductor Foundry Market size is valued at USD 155 billion in 2025 and is projected to reach a valuation of USD 334.6 billion by the end of 2035, rising at a CAGR of 8% during the forecast period, i.e., 2026-2035. In 2026, the industry size of semiconductor foundry is assessed at USD 167.4 billion.
The global semiconductor foundry sector is expanding rapidly, driven by a competition for technological sovereignty and robust global supply chains. The semiconductor industry is a critical national security and economic policy imperative for countries, moving beyond commercial rivalry. This is underscored by the launch of Intel Foundry in February 2024, marking the world's first systems foundry. The move quickly gained the approval of Microsoft's CEO, who announced that the company had selected Intel's 18A process for an upcoming custom chip product. This highlights a reality in which foundries are no longer factories but strategic allies of vital necessity to innovation.
The market expansion is being driven by massive government investments in re-shoring and diversifying chip production capacities. These programs are already yielding tangible dividends in the U.S., with the number of semiconductor industry plants rising at a significant rate. This is solely due to policy efforts like the CHIPS and Science Act, which, in April 2024, negotiated a first agreement with TSMC for as much as USD 6.6 billion in financing to enable its greater investment in Arizona, an outstanding collaboration between public policy and private industry that is reshaping the world's geography of semiconductor production.
