TSMC Holds 35% Market Share as World’s Largest Chipmaker, With Intel in Second Place, According to Data

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TSMC Solidifies Position as the Leading Chip Foundry

The Taiwan Semiconductor Manufacturing Company (TSMC) maintains its stature as the premier chip foundry globally, as highlighted in recent findings by Counterpoint Research. TSMC captures an impressive 35% of the market share, firmly establishing its dominance in an industry that encompasses not only semiconductor manufacturing but also essential processes like photomask production and assembly.

Intel, while trailing as the second-largest player in this sector, is making strides with its advanced 18A chip technology and Foveros packaging innovations. In contrast, Samsung is grappling with yield challenges that hinder its production capabilities. The entire semiconductor industry has experienced robust growth, driven substantially by surging AI demand, generating a staggering $72.3 billion in revenue.

Foundry 2.0: A New Era in Chip Production

Both TSMC and Counterpoint Research categorize the current foundry landscape as Foundry 2.0, a term that encompasses not just chip fabrication but also crucial operations such as packaging and photomask manufacturing. Photomasks play a pivotal role in the chip fabrication process, enabling manufacturers to accurately transfer designs onto wafers.

According to Counterpoint’s analysis, TSMC maintained its 35% market share of the Foundry 2.0 sector in the first quarter of 2025. This figure remained consistent with the fourth quarter of 2024, reflecting a modest annual increase of 0.9 percentage points.

In comparison, Intel, as a leading integrated chip manufacturer, has seen a slight increase of 0.6 percentage points in market share since Q4 2024. However, it recorded a decrease of 0.3 percentage points when compared to the same quarter the previous year, consolidating its position as the second-largest player in the Foundry 2.0 market.

Drivers of TSMC’s Success in the AI Era

Counterpoint attributes TSMC’s enduring lead in the semiconductor sector to its extensive orders from AI companies and its cutting-edge manufacturing processes. Though Samsung is also active in the high-end contract semiconductor manufacturing space, providing processes like 3-nanometer technology, its yield challenges significantly limit its mass-market viability.

In stark contrast, TSMC consistently produces thousands of wafers each month, with plans to commence 2-nanometer mass production later this year. Additionally, TSMC claims the title of the world’s largest photomask manufacturer, further solidifying its overall dominance in the Foundry 2.0 sector.

The Impact of AI Demand on Chip Packaging

The rising demand for AI chips is also influencing the chip packaging arena. Advanced packaging techniques are essential for AI chip functionality, and while TSMC primarily manages its own chip packaging, the firm has faced limitations in capacity. Consequently, companies like ASE and UMC have stepped in to meet the demand. Nevertheless, TSMC’s stronghold in the packaging sector enhances its competitive edge within the Foundry 2.0 landscape.

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