TSMC Maintains Commanding Market Leadership
Taiwan Semiconductor Manufacturing Company (TSMC) solidifies its position as the undisputed leader in the foundry space, capturing an impressive 70.2% market share with revenues of $30.2 billion in Q2 2025. This represents an 18.5% quarter-over-quarter growth from $25.5 billion in Q1 2025, highlighting the company's continued ability to capitalize on strong demand for advanced semiconductor manufacturing.
TSMC's dominance is particularly striking when considering that the company alone accounts for nearly three-quarters of the entire top 10 foundry revenue. This commanding position reflects the company's technological leadership in advanced process nodes and its critical role in manufacturing chips for major technology companies worldwide.
Samsung and SMIC Round Out Top Three
Samsung maintains its second-place position with $3.2 billion in revenue and a 7.3% market share, though this represents a significant gap behind TSMC. The Korean giant saw a healthy 9.2% quarter-over-quarter growth, indicating solid demand for its foundry services.
China's Semiconductor Manufacturing International Corporation (SMIC) holds third place with $2.2 billion in revenue and a 5.1% market share. Notably, SMIC experienced a slight decline of 1.7% compared to the previous quarter, making it the only company in the top 10 to show negative growth.
Mid-Tier Players Show Consistent Performance
The middle tier of foundries demonstrates steady growth across the board:
UMC (United Microelectronics Corporation)** ranks fourth with $1.9 billion in revenue (4.4% market share), showing robust 8.2% quarterly growth
GlobalFoundries holds fifth position with $1.7 billion in revenue (3.9% market share) and 6.5% growth
HuaHong Group rounds out the top six with $1.1 billion in revenue (2.5% market share) and 5.0% growth
Smaller Foundries Maintain Stability
The remaining top 10 foundries - VIS, Tower, Nexchip, and PSMC - each generated between $345-379 million in revenue, collectively representing about 3.5% of the total market. These companies showed modest but positive growth rates ranging from 2.9% to 5.4%, indicating healthy demand across all tiers of the foundry ecosystem.
Market Concentration Remains High
The data reveals the highly concentrated nature of the foundry industry, with the top 10 players accounting for 97% of the total market. This concentration underscores the capital-intensive nature of semiconductor manufacturing and the significant barriers to entry in advanced process technologies.
Industry Outlook
The strong quarterly growth of 14.6% suggests robust demand for semiconductor manufacturing services, driven by continued digitalization, AI development, and the ongoing technology upgrade cycles across various industries. TSMC's exceptional performance particularly highlights the premium placed on cutting-edge manufacturing capabilities.
The foundry industry's performance in Q2 2025 demonstrates the sector's critical importance in the global technology supply chain and its ability to generate substantial growth even in a mature market. As technology companies continue to outsource more of their manufacturing needs, the foundry model appears well-positioned for continued expansion.
Data source: TrendForce, September 2025
