Even though, the relationship between the fabless IC suppliers and foundries with respect to market growth is very close; the registered growth in sales for fabless suppliers is better than IDMs. Back in 2010, IDM IC sales grew 35% while the fabless IC company grew only 29%.
The huge difference between, fabless and IDM IC suppliers growth is evidently seen in the past few years. However the pandemic has rewritten the story for fabless IC suppliers, with 2021 sales surged 36% while IDM sales went up by 21%. Accounting for 14% of the IC market in 2003, the total sales for fabless IC companies went up from USD $66.4 billion to USD $177.7 billion. The surge has enabled the fabless companies set a new all-time record of having a 34.8% share in the overall IC market.
As per reports, over the long-term, fabless IC suppliers will continue to be a strong force in the total IC industry landscape. Their share in the total IC market is expected to reach the high-30s over the next five years.
