Report: Semi Demand 30% Above Supply, 20% Year-on-Year Growth

Semiconductor foundry offerings are thriving due to unprecedented demand for semiconductors and processors in recent quarters. Analysts from TrendForce believe that in Q1 2021 foundries will increase their revenue by 20% year-over-year as their capacities are fully loaded. Since the demand for chips is projected to continue to exceed the constrained supply for several quarters, market observers predict that manufacturers will be busy for a long time, and beyond this, will take a long time to catch up. This is good news for foundry revenue, and may encourage others to widen their foundry offerings. Warnings however about fab equipment are coming into play - being fully loaded means equipment now wears out faster, which increases risks of disruptions should that equipment also be short on supply.



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