Global Pure-Play Foundry Industry Q2 Revenue Increased 33% Year-on-Year

The global pure-play foundry industry's revenue grew 33% year-on-year in the second quarter of 2025, which the report attributes primarily to strong AI demand and Chinese subsidy policies.

Regarding specific companies, TSMC maintained its leading position as the industry leader with a 71% market share. Its growth was primarily supported by three core factors: accelerated 3nm process capacity ramp-up, high capacity utilization of the 4/5nm processes in the AI GPU sector, and the scaling of CoWoS advanced packaging technology.

SMIC ranked third. The company continued to benefit in Q2 from changes in the international landscape and advance stocking orders driven by consumer subsidies in the Chinese market.

Looking ahead, Counterpoint Research expects that the capacity utilization rate for advanced process nodes in the first half of 2025 will remain high. Coupled with the continued growth in wafer fab shipments, the industry's strong performance is expected to continue. With the rapid development of emerging technologies such as 5G, AI, and IoT, the demand for high-performance chips is continuously increasing, driving the ongoing expansion of the foundry market.

Another research firm, TrendForce, analyzed in its early September report that in Q2 2025, the advance stocking effect triggered by consumer subsidies in China, combined with demand for new smartphone, notebook/PC, and server products in the second half of the year, strengthened overall foundry capacity utilization and shipments. This pushed the revenue of the global top ten foundries to over $41.7 billion, setting a new record with a quarterly growth rate of 14.6%.

TrendForce believes that the main growth drivers for the foundry industry in Q3 will stem from seasonal procurement for new products. Advanced processes are receiving orders for the main chips of upcoming new products, and higher-priced wafers will significantly contribute to industry revenue. Mature processes are also supported by orders for peripheral ICs. The overall industry capacity utilization rate is expected to increase compared to the previous quarter, driving further quarterly revenue growth.