SCOTTSDALE, Ariz. - The long-term outlook indicates that Asia’s position in semiconductor production will continue to strengthen, report analysts at market researcher In-Stat in Scottsdale, Ariz.

Over the five-year period from 2005 to 2010, revenues from Asian foundries are expected to increase from $16.56 billion to $31.8 billion, according to In-Stat research.

The semiconductor food chain already strongly established in Asia-including design, EDA, IP firms, and testing and packaging services. In addition to reduced production costs in Asia, companies will also benefit from the growing demand for semiconductors in Asia itself, the high-tech market research firm says.

“With the foundry business centered in Taiwan, and major memory makers located nearby in Japan and South Korea, China is expected to drive the next manufacturing growth wave in Asia,” says Mayank Jain, In-Stat analyst. “Many IDM and foundry players in China are already expanding their production capacities.”

In-Stat found that overall foundry revenues in 2005 were $18.24 billion, and the contribution of Asian foundries was close to 91 percent, at $16.56 billion. In addition, In-Stat found that revenue from Asian foundries is expected to reach $31.8 billion in 2010.

With Samsung venturing into the leading-edge foundry business, competition is expected to heat up among top foundry players offering advanced process technology, while China’s foundries will offer low-cost fabrication on older technologies.

The In-Stat research, “Semiconductor Manufacturing in Asia: Focus on China, South Korea, and Taiwan” (IN0602728ASM), covers the semiconductor manufacturing market in Asia.

It includes a forecast of Asian foundry revenue, Asia’s market share of the foundry business, as well as of the overall Asian semiconductor market through 2010. It also includes analysis of the challenges and drivers of the Asian semiconductor industry. Technology road maps of major manufacturers are included.

This report is part of In-Stat’s Asia Semiconductor & Manufacturing Service, which tracks semiconductor consumption by application and by country. This service forecasts application segments in crucial Asian markets, including China, India, Japan, Korea and Taiwan.

Semiconductor manufacturing is also addressed by country, and an additional step in identifying the largest markets for semiconductor consumption is presented with a look at CEM and assembly capacity by country. This research is an invaluable tool in identifying business opportunities in the increasingly important Asian marketplace.

For more information on this research, visit: email.in-stat.com/cgi-bin4/DM/y/eyy70HWFGD0K560EHe20EU or contact Erin McKeighan at 480-609-4551 or emckeighan@reedbusiness.com.

For other information contact In-Stat online at www.instat.com.