TSMC Leads Global Semiconductor Foundry Market with Impressive 71% Market Share, Limiting Competition

Recent data highlights TSMC’s dominant presence in the foundry industry, positioning it as the unrivaled leader and effectively creating a monopoly that leaves little room for competitors.

Undoubtedly, TSMC stands out as the foremost supplier for semiconductor needs, attracting major technology players such as Apple, NVIDIA, AMD, and Qualcomm. The current surge in demand for artificial intelligence (AI) technologies has further amplified TSMC’s production line efficiency. According to Counterpoint Research, the company’s foundry market share saw a notable uptick of 3% from the previous quarter, now reaching an impressive 71%. This development reinforces the perception of TSMC as a dominant force within the pure-play foundry market.

Pure Foundry Market Share (Q1 2024 – Q2 2025) — Image Credits: Counterpoint Research

The analysis targets foundry services intended for external clients, intentionally excluding companies like Intel that have their own chip design capabilities. TSMC’s substantial market share is attributable to the increasing demand for advanced nodes like 3nm and 5nm, as well as its innovative packaging solutions such as CoWoS. The Taiwanese manufacturer has decisively outperformed its competitors, and current trends indicate this lead will likely persist for several upcoming quarters.

In contrast, other players in the market, like Samsung, have secured an 8% market share, with SMIC and UMC each holding a 5% share. TSMC’s remarkable achievements over recent years underscore its capability to deliver robust processes and high production volumes at competitive node pricing. This success is rooted not only in technological prowess but also in the immense trust established with clients, making them hesitant to consider alternatives, such as Intel.

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