Our estimates suggest that manufacturing of about 74% of all communication chips are outsourced. The retail value of that is around $25 billion per annum. If we assume that the manufacturer gets about half of that, we are looking at a market size of $12.5 billion for chip outsourcing within communications industry alone.

TSMC, UMC, SMIC and Chartered Semiconductors are some of the leading manufacturers in communication chips and make up over 50% of the total outsourcing business. TSMC leads the market followed by UMC and SMIC in that order.