Global semiconductor foundry market posts record revenue of $320 billion in 2025

The global semiconductor foundry market reached a record $320 billion in revenue in 2025, up 16% year over year, according to Counterpoint Research’s Foundry 2.0 market report. The expansion was driven mainly by demand for GPUs used in artificial intelligence and by AI ASIC chips.

What “Foundry 2.0” covers

Counterpoint’s “Foundry 2.0” broadens the scope beyond pure foundries. It includes semiconductor companies that run closed manufacturing supply chains (IDMs), outsourced assembly and testing (OSAT) providers, and photomask suppliers.

Market share and regional performance

Within this framework, TSMC accounted for up to 38% of global market share. Its annual revenue rose 36% year over year, while non-TSMC foundries recorded more modest growth of about 8% in 2025.

Chinese manufacturers also stood out. SMIC grew 16%, and Nexchip increased as much as 24%, supported by domestic localization of supply chains. Counterpoint projects that Chinese firms’ double-digit growth momentum can continue into 2026.

Shift from wafer capacity to system-level integration

Counterpoint analyst Jake Lai said the industry’s key challenges are shifting. Rather than being limited to wafer manufacturing capacity, bottlenecks are moving toward system-level integration. As front-end headroom narrows, technical constraints increasingly appear in the back end of the production chain.

Samsung’s process mix and pricing outlook

Counterpoint described Samsung Electronics’ position as mixed. Demand for its 4nm process is “generally stable,” which helps support better pricing. The transition to 2nm is expected to attract higher-value orders, particularly in areas such as AI and mobile devices.

Intel Foundry and inventory restocking

Counterpoint estimates Intel Foundry accounts for about 6% of total revenue in the Foundry 2.0 ecosystem. In the second half of 2025, Intel Foundry and other IDMs—including Texas Instruments and Infineon—focused largely on restocking after earlier inventory buildup. As a result, Texas Instruments posted 13% recovery year over year, while Infineon grew 5%.

OSAT growth and advanced packaging capacity

The OSAT sector recorded 10% revenue growth in 2025. Counterpoint cited companies such as ASE Technology Holding (including SPIL) and Amkor Technology as beneficiaries of demand shifts, in the context of limited internal advanced packaging capacity at TSMC. Among OSAT providers, ASE maintained outpacing growth and became the second-largest revenue generator in the overall Foundry 2.0 market, behind only TSMC.

Counterpoint projects that industry-wide advanced packaging capacity could rise by about 80% in 2026. The growth is expected to be supported by AI-focused companies signing long-term cooperation agreements with OSAT suppliers to secure capacity for advanced packaging technologies such as CoWoS-S and CoWoS-L.

Advanced packaging as a strategic link

William Li, a senior analyst at Counterpoint Research, said advanced packaging is no longer just a back-end support step. It has become a strategic link in developing AI systems.