TSMC Gains Foundry Share But Others Lose Ground
In the third quarter, total revenue for the top 10 foundries increased by 8.1%. The fourth quarter looks shaky
By Mark LaPedus
TSMC continues to gain market share in the foundry business, but many other vendors are losing ground.
In the overall foundry business, TSMC’s market share reached 71% in the third quarter of 2025, up from 70.2% in the second quarter, according to TrendForce, a market research firm. In the third quarter, Samsung, UMC and GlobalFoundries slightly lost share. HuaHong Group and Nexchip gained share.
The foundry industry, a key part of the semiconductor business, involves a number of companies called foundry vendors. These vendors make chips for other companies in large manufacturing facilities called fabs.
It’s also a competitive business. In the third quarter of 2025, TSMC remained in first place by a wide margin. Samsung was in second place with 6.8% share, followed by SMIC (5.1%), UMC (4.2%), GlobalFoundries (3.6%), HuaHong Group (2.6%), Vanguard (0.9%), Nexchip (0.9%), Tower (0.9%) and PSMC (0.8%), according to TrendForce (See rankings chart below).
In the rankings, Nexchip surpassed Tower to secure the eighth position. Intel, which is attempting to make inroads in the foundry business, is not in the top-10 rankings. Reports have surfaced that Intel may have secured some foundry business from Apple and Nvidia. That could help Intel gain some share. Still, Intel is expected to lose money in the foundry business for the foreseeable future.
Who’s doing what?
In the third quarter, total revenue for the top-10 foundries increased by 8.1% quarter-over-quarter to nearly $45.1 billion, according to TrendForce. The foundry market was fueled by strong demand for AI chips, consumer electronic devices and IC peripherals.
TrendForce notes that expectations for 2026 demand have become cautious amid geopolitical headwinds. “Furthermore, DRAM shortages and quarterly price increases since mid-2025 continue to strain downstream production costs,” according to the research firm. “Even though automotive and industrial-control segments are preparing to resume restocking toward the end of 2025, the 4Q25 uptick in foundry utilization will be limited. Consequently, revenue growth among the top-10 is projected to narrow significantly in the fourth quarter.”
The market dynamics are different for each foundry vendor. Here’s how each foundry vendor fared during the third quarter of 2025:
TSMC
Taiwan’s TSMC, the world’s largest foundry vendor, has quietly begun shipping its 2nm process, analysts said. The shipments actually started in the fourth quarter. Intel and Samsung are also shipping their respective 2nm-class technologies.
TSMC is expected to garner huge orders for its 2nm process from Apple and others. The technology isn’t cheap. TSMC’s pricing for its 2nm process is a whopping $30,000 per wafer or higher, according to Counterpoint Research.
Both Samsung and Intel are scrambling to secure 2nm foundry business. As stated, Intel hopes to win some foundry business with Apple and Nvidia. Samsung has garnered some 2nm business from Tesla and others. Still, the yields for both Intel and Samsung are questionable.
Nonetheless, TSMC reported that its third-quarter revenue was fueled by smartphones and high-performance computing (HPC). TSMC’s foundry customers include AMD, Apple, Broadcom, Nvidia and others.
“As Apple aggressively stockpiled for new iPhones and Nvidia’s Blackwell platform entered peak mass production, (TSMC’s) wafer shipments and ASPs rose QoQ,” according to TrendForce. “Revenue rose 9.3% to slightly above $33 billion, raising its market share slightly to 71%.”
Samsung, SMIC
South Korea’s Samsung, the world’s second largest foundry vendor, continues to lose share in the arena. The company’s foundry share hit 7.3% in the second quarter.
In Q3, “Samsung Foundry’s overall capacity utilization rose slightly from the previous quarter, but the impact on revenue was limited. Its sales held roughly flat at $3.184 billion, maintaining a 6.8% market share and ranking second,” according to TrendForce.
SMIC, China’s largest foundry vendor, continues to see strong growth in the mature node segments. “SMIC saw improvements in utilization, wafer shipments, and ASP in 3Q25, driving its revenue up 7.8% QoQ to $2.382 billion and securing third,” according to TrendForce.
UMC, GF, HuaHong
Ranking in fourth place, Taiwan’s UMC benefited from demand for peripheral ICs, along with early pull-in orders from European and U.S. customers. “Mature-process restocking modestly lifted overall utilization, pushing revenue 3.8% QoQ to nearly $1.98 billion and a 4.2% market share,” according to TrendForce.
U.S.-based GlobalFoundries (GF) also saw slightly higher wafer shipments during the quarter. “However, a one-time ASP adjustment left revenue essentially flat at $1.69 billion. Although it retained the fifth position, its market share declined to 3.6% amid intensifying competition,” according to TrendForce.
China’s HuaHong Group reported over $1.21 billion in revenue, with a 2.6% market share and a sixth-place ranking. “Its subsidiary, HHGrace, benefited from the gradual ramp-up of its 12-inch capacity and higher-priced wafer shipments in the second half of 2025, which helped drive up wafer shipments and ASP,” according to TrendForce.
Other vendors
Taiwan’s Vanguard, or VIS, ranked seventh with $412 million in revenue, owing to rising PMIC demand for new smartphone and PC/notebook models. This offset declining DDIC orders.
China-based Nexchip experienced a 12.7% QoQ growth, fueled by strong demand for consumer DDIC and PMIC products. The company surpassed Tower to secure the eighth position.
Isreal’s Tower rose 6.5% QoQ to achieve $396 million in revenue, but ultimately fell to ninth place despite higher utilization and shipments. Taiwan’s PSMC, boosted by increased wafer demand for DRAM and better foundry pricing, reported $363 million, rising 5.2% QoQ to secure the tenth spot, according to the firm.