Institutional data shows that driven by the increased demand for application processors and other telecommunication equipment sales in 5G smartphones, the pure foundry market, which experienced a 1% drop last year, is expected to usher in explosive growth. It is expected in 2020 Looking up to 19%... IC Insights, a market research agency, recently updated McClean's August report in 2020 and released new data analysis on the global foundry market. This report divides wafer foundries into two categories, one is pure wafer foundries, including TSMC, GlobalFoundries, UMC and SMIC. The other type is IDM foundry. In addition to producing the wafers needed for their own chips, these manufacturers also provide foundry services. Such manufacturers include Samsung, Intel and so on. Driven by the growing demand for sales of application processors and other telecommunications equipment in 5G smartphones, the pure foundry market is expected to grow strongly by 19% this year after a 1% decline in 2019 (see Figure 1). The agency estimates that 200 million 5G smartphones will be shipped in 2020 (some forecasts are 250 million), up from about 20 million in 2019. If achieved, the 19% growth will mark the strongest growth rate for the pure foundry market since its 18% growth in 2014. Before 2019, the pure wafer foundry market last fell in 2009 (-9%). As shown in the figure, IC Insights does not expect a drop in the pure foundry market during the entire forecast period. Interestingly, in the past 16 years (2004-2019), the pure foundry market has grown by 9% or less in 9 years, while it has grown at a double-digit rate in the other 7 years. Obviously, in the past 15 years, the pure wafer foundry market has experienced a series of booms and depressions, but overall it has maintained a steady growth trend. The agency expects that pure foundry will account for 81.4% of total foundry sales by 2020, down from 89.3% in 2014. From 2019 to 2024, the compound annual growth rate (CAGR) of pure foundry is expected to be 9.8%, which is 3.8 percentage points higher than the 6.0% compound annual growth rate in 2014 and 2019, and exceeds the same forecast period The entire IC market expects a compound annual growth rate of 7.3%.