--- title: "Semiconductor Foundries Industry" description: "60 SEC filers are classified under the Standard Industrial Classification code that describes the semiconductor foundries industry." canonical: https://www.getswoopr.com/stocks/industries/information-technology/semiconductor-foundries/ source: "Swoopr Investment: https://www.getswoopr.com" --- # Semiconductor Foundries Industry ## Direct Answer 60 SEC filers are classified under the Standard Industrial Classification code that describes the semiconductor foundries industry, and their latest annual reports show $542.8 billion of combined revenue and a median operating margin of -2.3%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics. ## Industry Overview Semiconductor foundries manufacture chips designed by other companies and invest tens of billions in fabs. Leading-edge capability, utilization and customer commitments decide margins, and a few players dominate advanced nodes. The first numbers to compare across companies here are wafer shipments and utilization, node mix and gross margin. ## Key Industry Metrics - **Wafer shipments and utilization**: The number of wafers produced and the share of capacity in use. High utilization absorbs the large fixed cost of fabs, while falling utilization quickly compresses margin. - **Node mix**: The split of production between advanced and mature process technologies. Leading-edge wafers sell at higher prices, so mix shows how much revenue comes from the most valuable capacity. - **Gross margin**: Revenue left after depreciation, materials and labor. Utilization, process leadership and customer commitments largely determine it, and ramp costs for new fabs can weigh on it. - **Capital spending**: Money spent on new fabs and tools. It is very large and sets future capacity, so compare it with customer commitments and expected demand. - **Customer concentration**: The share of sales from a few chip designers. A few large customers account for much of leading-edge volume, so one customer's plans move results. ## Primary Macro Drivers - **AI and high-performance computing demand**: Accelerators and server chips need leading-edge wafers and advanced packaging, raising node mix, wafer shipments and average pricing. - **Smartphone and automotive cycles**: Device launches and car chip needs drive wafer orders on mature and advanced nodes, appearing in utilization and shipments. - **Technology roadmap**: Keeping pace with smaller nodes decides which customers a foundry can win, affecting node mix, gross margin and capital spending. - **Government fab subsidies**: Grants and tax credits for plants lower the net cost of capacity and influence where fabs are built, appearing in capital spending and margins. ## Major Risks - **Capital intensity**: Fabs cost very large sums and must be filled to earn returns, so weak demand raises per-wafer cost; watch capital spending, utilization and depreciation. - **Customer concentration**: A few large chip designers account for most revenue, so their order shifts show directly; watch top-customer share and wafer shipments. - **Geopolitical risk**: Plant locations and customer supply chains can be hit by tension or export limits; watch risk-factor language, regional revenue and capacity plans. - **Cyclical utilization**: Slowing device and server demand lowers utilization and pricing; watch utilization, customer inventory and wafer shipment trends. ## Industry Characteristics | Characteristic | Profile | | --- | --- | | Cyclicality | Cyclical | | Capital Intensity | High | | Regulatory Intensity | Medium | | Industry Maturity | Growth | | Geographic Importance | Global | ## Semiconductor Foundries Filers in the SEC Record 60 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 3674. Their latest fiscal years end between 2025 and 2026, and together they reported $542.8 billion of revenue. Median revenue growth over the prior year was 20.3%. Median operating margin was -2.3% and median net margin -1.7%. Median total liabilities were 34% of total assets, and 27 of 60 reported a profit in their latest year. | Company | Revenue | Growth | Operating margin | Net margin | Year | | --- | --- | --- | --- | --- | --- | | [Nvidia Corp](https://www.getswoopr.com/stocks/companies/nvidia/) | $215.9 billion | 65.5% | 60.4% | 55.6% | FY 2026 | | [Broadcom Inc.](https://www.getswoopr.com/stocks/companies/broadcom/) | $63.9 billion | 23.9% | 39.9% | 36.2% | FY 2025 | | [Intel Corp](https://www.getswoopr.com/stocks/companies/intel/) | $52.9 billion | -0.5% | -4.2% | -0.5% | FY 2025 | | [Micron Technology Inc](https://www.getswoopr.com/stocks/companies/micron-technology/) | $37.4 billion | 48.9% | 26.1% | 22.8% | FY 2025 | | [Advanced Micro Devices Inc](https://www.getswoopr.com/stocks/companies/advanced-micro-devices/) | $34.6 billion | 34.3% | 10.7% | 12.5% | FY 2025 | | [Applied Materials Inc](https://www.getswoopr.com/stocks/companies/applied-materials/) | $28.4 billion | 4.4% | 29.2% | 24.7% | FY 2025 | | [Texas Instruments Inc](https://www.getswoopr.com/stocks/companies/texas-instruments/) | $17.7 billion | 13.0% | 34.1% | 28.3% | FY 2025 | | [Nxp Semiconductors N.V.](https://www.getswoopr.com/stocks/companies/nxp-semiconductors/) | $12.3 billion | -2.7% | 24.8% | 16.5% | FY 2025 | The 8 largest of 60 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code. ## Where to Go Next The Semiconductor Foundries guide describes how the industry earns money, what to measure and what can go wrong. 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Key performance indicators for the Semiconductor Foundries industry include: Wafer shipments and utilization, Node mix, Gross margin, Capital spending, Customer concentration. Which matter most depends on the company's model, so compare them across several companies rather than relying on one. How cyclical is the Semiconductor Foundries industry? The Semiconductor Foundries industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing. What are the biggest risks in the Semiconductor Foundries industry? The primary risks for Semiconductor Foundries companies include: Capital intensity, Customer concentration, Geopolitical risk, Cyclical utilization. Investors should assess each company's exposure to these factors and its track record of navigating them. **[Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/)** Swoopr's editorial team produces independent investment education content reviewed for accuracy and clarity. We do not provide personalized financial advice. See our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/).