Digitimes Research predicts that the output value of China's IC foundry industry will reach US$3.29 billion in 2012, up 13.7% from US$2.89 billion in 2011. Looking into 2013, the output value for China's IC foundry sector will see a modest 2.1% increase to US$3.36 billion. In Taiwan, the foundry sector will report US$21.95 billion and US$23.32 billion, respectively, in output value for 2012 and 2013. The former figure and the latter represent growth of 11.8% and 6.2%, respectively.
Chip suppliers' demand for 28nm and below technology products will be strong in 2012, and the trend is expected to continue in 2013. On the supply side, both Samsung and Globalfoundries are looking to build new capacity which will likely cause the overall foundry capacity to exceed demand in 2013. Competition in the global foundry market will also be intense, and any structural change in the industry will depend on companies' progress in the development of 28nm and more advanced process technologies.