New York, NY – February 04, 2025— The global legacy chips wafer foundry market is set to experience steady growth, driven by the consistent demand for mature-node semiconductors in various industries.
These chips are particularly crucial for applications that do not require the latest cutting-edge technology but still require reliable performance at a lower cost. The market is expected to grow from USD 15.33 billion in 2024 to USD 22.91 billion by 2034, reflecting a CAGR of 4.10% over the forecast period from 2025 to 2034.
In 2024, the Asia-Pacific region held a dominant market position, capturing more than 76.2% of the global legacy chips wafer foundry market, generating USD 11.68 billion in revenue.
This strong presence in the region can be attributed to the substantial manufacturing capacity and technological capabilities of countries like China, Taiwan, Japan, and South Korea. The rapid adoption of legacy chips in automotive electronics, consumer electronics, industrial control systems, and other sectors in the Asia-Pacific region continues to drive market growth.
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As industries such as automotive and industrial automation rely heavily on these cost-effective yet reliable chips, the demand for legacy semiconductors remains robust. Additionally, the market is supported by the diversification of semiconductor production in various regions, which allows manufacturers to ensure steady supply chains amid geopolitical challenges.
The legacy chips wafer foundry market remains an essential part of the broader semiconductor ecosystem, ensuring that key industries continue to operate effectively while keeping production costs manageable.
Key Takeaways
- Market Value Growth: The legacy chips wafer foundry market is expected to grow from USD 15.33 billion in 2024 to USD 22.91 billion by 2034, indicating steady market expansion over the next decade.
- CAGR: The market is forecast to experience a Compound Annual Growth Rate (CAGR) of 4.10%, reflecting stable and continuous growth during the forecast period.
- By Process Node – 28nm: The 28nm process node is the market leader, accounting for 43.6% of the total market share. Its popularity is due to its balanced performance and cost-effectiveness, making it ideal for a wide range of applications.
- By Application – Automotive Electronics: Automotive electronics lead the application segments, representing 41.8% of the market share. This dominance is driven by the increasing use of semiconductors in automotive control systems, infotainment, and advanced safety features.
- Regional Dominance – Asia Pacific: The Asia Pacific region holds the largest market share, contributing 76.2% to the global market. This is supported by the region’s strong semiconductor manufacturing base and the growing demand for legacy chips in key industries such as automotive and consumer electronics.
- Steady Growth Potential: The legacy chips wafer foundry market demonstrates consistent growth potential, fueled by continued demand for affordable and reliable chips in sectors like automotive, industrial applications, and consumer electronics.
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Key Segmentations
By Process Node:
- 28nm: This process node holds the largest market share due to its optimal balance of performance, power efficiency, and cost, making it suitable for a wide variety of applications.
- 40/45nm: The 40/45nm process node is used for applications where cost-effectiveness is critical, while still providing adequate performance for many consumer electronics and automotive systems.
- 65nm: The 65nm process node is typically used in legacy applications where high performance is not essential, but reliability and cost efficiency are prioritized.
- 90nm and Above: These process nodes are utilized in older applications and continue to be relevant for industries requiring mature technologies with lower performance demands.
By Application:
- Smartphones and Tablets: Legacy chips are widely used in smartphones and tablets, where performance demands are balanced with cost considerations.
- Home Appliances: Chips used in home appliances typically rely on legacy nodes for efficient and cost-effective operation in products like washing machines, refrigerators, and microwaves.
- Automotive Electronics: Automotive applications, including advanced driver assistance systems (ADAS) and in-vehicle infotainment, rely heavily on legacy chips for reliable and durable performance.
- Industrial Control Systems: Legacy chips are essential in industrial applications, where long product lifecycles and reliability are key for machinery, factory automation, and process control systems.
- Robotics: In robotics, legacy chips are used for basic control functions and motor control systems, where advanced processing capabilities are not critical.
- Telecom Equipment: Telecom infrastructure uses legacy chips for communication equipment and base station systems, providing stable performance at lower costs.
- Network Infrastructure: Legacy chips are critical in the maintenance and operation of networking equipment, especially in older systems still in use for large-scale infrastructure.
- Medical Devices: Legacy chips find applications in medical devices, including diagnostic equipment and monitoring systems, where reliability and long-term performance are essential.
- Others: This category includes various niche applications, such as consumer electronics, medical monitoring, and industrial devices, where legacy chips remain relevant due to their cost-effectiveness and dependable performance.
Key Player Analysis
TSMC (Taiwan Semiconductor Manufacturing Company): TSMC is the market leader in semiconductor manufacturing, offering a wide range of process nodes, including legacy chips. The company is known for its high-quality production capabilities, extensive R&D investments, and large-scale operations that cater to multiple industries, including consumer electronics, automotive, and industrial applications.
Samsung Foundry: As one of the top players in the global semiconductor market, Samsung Foundry has a strong presence in the legacy chips segment. Samsung continues to develop advanced manufacturing technologies while also producing mature-node semiconductors to meet demand in automotive electronics, consumer devices, and more. The company’s investments in new technology and expansion in key markets ensure its continued market relevance.
GlobalFoundries: GlobalFoundries specializes in legacy chips and has a strong foothold in mature process nodes, particularly in automotive, industrial, and telecommunications applications. With substantial investments in expanding its production capacity, including a new semiconductor plant in Singapore, GlobalFoundries focuses on delivering reliable and cost-effective solutions for various industries.
Intel Corporation: Although Intel is better known for its cutting-edge processors, it also plays a significant role in the legacy chips wafer foundry market. The company produces older process node chips for industrial control systems, automotive applications, and more. Intel’s deep technological expertise and robust manufacturing capabilities ensure that it remains a key player in the semiconductor market.
United Microelectronics Corporation (UMC): UMC is another important player in the legacy chip market. The company’s portfolio includes mature semiconductor process nodes, and it serves a wide array of industries, such as consumer electronics, automotive, and industrial applications. UMC’s focus on cost-effective, reliable chip manufacturing makes it a critical player in the production of legacy semiconductors.
Recent Developments
TSMC’s Expansion in the U.S.: In 2024, TSMC announced the opening of a semiconductor fabrication plant in Arizona, USA, aimed at enhancing domestic production capabilities for legacy chips. This strategic expansion aligns with the U.S. government’s push to reduce reliance on foreign semiconductor production and secure the supply chain. The plant is set to begin production in 2025, focusing on both advanced and mature-node semiconductors for automotive and consumer electronics.
GlobalFoundries’ Investment in Singapore: GlobalFoundries unveiled a new $4 billion semiconductor fabrication plant in Singapore in 2023, designed to increase its production capacity for legacy chips. This investment is a part of the company’s strategy to cater to growing demand across industries like automotive, industrial automation, and telecommunications. The facility aims to meet the rising demand for reliable, mature-node chips in the Asia-Pacific region.
Samsung’s AI Chip Production: Samsung Foundry secured a major contract in 2024 to produce AI application chips for Japanese company Preferred Networks, utilizing its cutting-edge 2nm technology. While primarily focused on AI and advanced chips, this move underscores Samsung’s commitment to improving its foundry offerings, including legacy chips, to maintain competitiveness in the evolving semiconductor market.
China’s Efforts in Self-Reliance: Amid global trade tensions, China has been ramping up efforts to develop its semiconductor manufacturing capabilities. In 2024, Chinese foundries increased their market share for legacy chips, driven by both domestic demand and geopolitical factors. This increase is seen as part of China’s broader strategy to ensure its self-sufficiency in semiconductor production, which includes investments in legacy process technologies.
U.S. CHIPS Act Funding: In 2024, GlobalFoundries and TSMC received final awards under the U.S. CHIPS and Science Act, a $52 billion initiative designed to strengthen U.S. semiconductor manufacturing. These funds will help boost domestic production of both advanced and legacy semiconductors, supporting industries like automotive and telecommunications that rely on older process technologies.
Conclusion
In conclusion, the legacy chips wafer foundry market is poised for steady growth, driven by consistent demand across key industries like automotive, consumer electronics, and industrial applications.
As companies such as TSMC, Samsung, and GlobalFoundries continue to expand their production capabilities and invest in new technologies, the market will likely remain strong.
Geopolitical shifts and supply chain diversification further enhance the demand for legacy chips, while technological advancements ensure their relevance.
With a growing emphasis on cost-effectiveness and reliability, legacy chips will continue to play a crucial role in powering essential systems globally.
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