TSMC leads foundry market with 70% share in Q2 2025

TSMC’s share of the global pure-play wafer foundry market reached 70.2% in Q2 2025, according to TrendForce.

The Taiwan-based chipmaker posted US$30.2 billion in sales for the quarter, up 18.5% from Q1, driven by demand for AI and new smartphones.

Samsung Foundry held second place with a 7.3% share and US$3.2 billion in sales, while China’s SMIC ranked third at 5.1% and US$2.2 billion.

Other leading companies included United Microelectronics (4.4%), GlobalFoundries (3.9%), and Huahong Group (2.5%).

The top 10 contract chipmakers made up 97% of global foundry revenue in Q2, with total sales rising 14.6% quarter-on-quarter to US$41.7 billion.

TrendForce expects foundry sales to continue rising in Q3 as seasonal demand increases.

🔗 Source: Focus Taiwan

🧠 Food for thought

Implications, context, and why it matters.

TSMC’s market share jumped from 67.6% to 70.2% in just one quarter, while second-place Samsung actually lost ground, dropping from 7.7% to 7.3% despite growing sales1.
The gap between TSMC and its nearest competitor has become enormous. TSMC’s $30.24 billion in quarterly sales dwarfs Samsung’s $3.16 billion, representing a significant revenue difference1.
Market concentration remains extreme, with the top 10 foundries controlling 97% of global revenue, unchanged from the previous quarter, suggesting the industry structure has stabilized around a few dominant players1.
This consolidation reflects the massive capital requirements for advanced semiconductor manufacturing, where only companies with sufficient scale can afford the multi-billion dollar investments needed for cutting-edge facilities.

TSMC’s foundry-focused approach has generated a $1.262 trillion market capitalization, making it the 9th most valuable company globally and significantly outvaluing traditional integrated manufacturers2.
The company pioneered the pure-play foundry model in 1987, specializing exclusively in manufacturing chips designed by other companies rather than competing with its own chip designs2.
This model allows TSMC to serve multiple customers including Apple and Nvidia without conflicts of interest, while integrated manufacturers like Samsung face the challenge of competing with their foundry customers in end markets.
TSMC’s 70.2% foundry market share demonstrates how specialization has proven more effective than the integrated approach, as companies like Intel have struggled to compete in foundry services while maintaining their own chip design business1.