Global semiconductor foundry revenue climbed to an all-time high of US$41.7 billion in the second quarter of 2025 (2Q25), according to TrendForce.
This represents a strong 14.6 percent quarter-over-quarter (QoQ) increase, driven by China’s consumer subsidy program that encouraged early stocking, alongside rising demand for new smartphones, notebooks, PCs, and servers scheduled for launch in the second half of the year. Both wafer shipments and capacity utilization improved across the world’s leading foundries, signaling a robust rebound in the semiconductor supply chain.
TrendForce expects the third quarter of 2025 to maintain positive momentum, supported by seasonal demand. Advanced nodes will see continued growth from flagship chips such as AI processors and premium smartphone SoCs, while mature nodes will benefit from orders for peripheral ICs. However, revenue growth in the third quarter is expected to be more moderate compared to the rapid acceleration seen in Q2.
Among the top players, TSMC led the market with record-breaking results, reporting revenue of $30.24 billion, up 18.5 percent QoQ. Strong orders from major smartphone clients, surging shipments of AI GPUs, and steady demand for notebooks and PCs boosted wafer shipments and average selling prices. With these results, TSMC’s market share rose to an unprecedented 70.2 percent, cementing its leadership position.
Samsung Foundry ranked second with revenue of $3.16 billion, up 9.2 percent QoQ, supported by smartphone demand and the ramp-up of the Nintendo Switch 2. Shipments were heavily weighted toward advanced nodes, pushing its market share to 7.3 percent.
SMIC remained in third place, but its revenue slipped 1.7 percent QoQ to $2.21 billion, with market share dipping slightly to 5.1 percent. Despite benefits from U.S. tariffs and China’s subsidies, lingering production challenges at its advanced-node lines caused shipment delays and lower ASPs.
UMC posted stronger results, with both shipments and ASPs rising to drive revenue up 8.2 percent QoQ to $1.9 billion, giving it a 4.4 percent share.
GlobalFoundries followed closely in fifth place with revenue of $1.69 billion, up 6.5 percent QoQ, benefiting from new product stocking and modest ASP gains, which secured it a 3.9 percent share.
Tier 2 foundries also posted steady improvements. HuaHong Group, including HHGrace, HLMC, and affiliates, saw revenue rise by around 5 percent to $1.06 billion, achieving a 2.5 percent share, thanks to subsidy-driven demand and China’s push for IC localization.
Vanguard reported revenue of $379 million, up 4.3 percent QoQ, while Tower Semiconductor achieved $372 million, up 3.9 percent QoQ, as clients resumed stocking for second-half launches. Nexchip generated $363 million, up nearly 3 percent QoQ, and PSMC rounded out the top ten with $345 million, up 5.4 percent QoQ.
In summary, the global foundry sector is experiencing one of its strongest growth phases in recent years, powered by demand for AI, smartphones, PCs, and gaming devices, along with government subsidies in China that boosted utilization across Tier 2 foundries. While Q3 2025 is expected to extend this growth trajectory, the pace will likely be more moderate, as the market balances strong seasonal demand with capacity expansion and pricing pressures.
Baburajan Kizhakedath
