tsmc dominates foundry market with surge to 38% share
Taipei, Monday, 15 September 2025.
Taiwan Semiconductor Manufacturing is asserting dominance. TSMC’s market share hit 38% in the second quarter of 2025. This is up from 31% the previous year. Counterpoint Research suggests strong demand is the reason. Investors should watch TSMC’s revenue and profitability. The company’s stock performance is tied to its foundry market leadership. The surge highlights TSMC’s competitive edge. The company is well-positioned to leverage its advanced manufacturing capabilities.
foundry market growth
The entire foundry industry experienced substantial growth. Foundry revenue increased by 19% year-over-year [7]. Demand for artificial intelligence (AI) chips drove this growth [7]. Advanced chip-making and packaging techniques are increasingly important [7]. Government subsidies from China also contributed to the surge in orders [7]. Counterpoint Research anticipates continued industry expansion in the third quarter, fueled by these ongoing trends [7].
expert analysis
William Li, a senior analyst at Counterpoint, believes TSMC will likely maintain its lead [7]. This is due to its cutting-edge technology and strong customer relationships [7]. TSMC is not only a leader in advanced chip manufacturing but also a frontrunner in next-generation chip packaging [7]. Jake Lai, another analyst, expects the upcoming consumer electronics season and growing AI demand to further boost foundry demand in the third quarter [7].
competitor performance
While TSMC’s market share increased, most competitors remained stable or declined [7]. Texas Instruments and Intel both held steady with 6% market share [7]. Infineon’s market share decreased slightly from 6% to 5% [7]. Samsung also experienced a slight decrease, falling from 5% to 4% market share [7]. TSMC’s advancements solidify its position as a leader while competitors face challenges in maintaining their positions [7].
wall street’s view
Analysts on Wall Street have a strong buy consensus rating on TSM stock [7]. This is based on six buy ratings, one hold rating, and zero sell ratings in the last three months [7]. The average TSM price target is $273.43 per share, suggesting a 4.7% upside potential [7]. This positive outlook reflects confidence in TSMC’s continued growth and market leadership [7].
future prospects
TSMC is currently constructing 2nm and A16 (1.6nm) chip fabrication facilities [6]. The 2nm process is projected to improve performance by 10% to 15% [6]. It is also expected to reduce power consumption by 20% to 30% [6]. These advancements position TSMC to capitalize on the growing AI chip market [6]. The AI chip market anticipates an annual growth rate of approximately 35% through 2035 [6].