tsmc dominates foundry market with record revenue surge
Hsinchu, Tuesday, 2 September 2025.
tsmc’s grip on the semiconductor industry tightened significantly in q2 2025. The company’s global revenue soared by 14.6%, reaching unprecedented levels. This surge propelled tsmc’s market share to a staggering 70.2%. This impressive growth was fueled by robust demand for ai accelerators, smartphones, and next-generation pcs. While samsung also saw growth, smic experienced a slight setback, highlighting the intensifying competition in the foundry landscape. tsmc now controls seven out of every ten dollars spent in the foundry market.
financial performance
tsmc’s q2 2025 revenue reached $30.24 billion, marking an 18.5% increase compared to the previous quarter [2]. This growth is attributed to increased wafer shipments and higher average selling prices [2]. TrendForce集邦咨询 reports that the overall revenue for the top ten global foundries reached over $41.7 billion, a 14.6% increase from the previous quarter [3]. This surge was driven by early stocking due to consumer subsidies in china and demand for new smartphones, laptops/pcs and servers in the second half of the year [2][3].
market share and competition
tsmc’s commanding 70.2% market share reflects its strong position in the foundry market [1][2]. samsung followed with a 7.3% market share, achieving revenue of nearly $3.16 billion, a 9.2% increase [2]. smic, while still ranking third, experienced a 1.7% decline in revenue, settling at approximately $2.21 billion with a 5.1% market share [1][2]. umc and globalfoundries secured the fourth and fifth positions, respectively [2].
stock market reaction
despite the positive revenue news, tsmc’s stock experienced a pre-market decline on september 2, 2025 [4]. the stock fell over 3% in pre-market trading, with an earlier drop of nearly 8% [4]. nvidia also saw a 3% decline in pre-market trading [4]. this volatility highlights the complex interplay of factors influencing tsmc’s stock performance, including broader market trends, geopolitical concerns, and investor sentiment [4].
future outlook
trendforce集邦咨询 anticipates continued growth in the third quarter of 2025, driven by seasonal demand for new products [3]. advanced processes are expected to see a surge in orders for new flagship chips, boosting industry revenue [3]. mature processes will also benefit from orders for peripheral ics, further increasing overall capacity utilization [3]. tsmc anticipates q4 2025 revenue to be between $21 billion and $22 billion [5]. ceo c.c. wei noted strong demand in high-performance computing and artificial intelligence [5].
manufacturing capacity and technology
nearly three-quarters of tsmc’s sales come from 7nm nodes and below, with 3nm contributing approximately a quarter of wafer revenue [1]. the upcoming 2nm node is anticipated to carry a price premium over 3nm [1]. this focus on advanced nodes enables tsmc to capitalize on the growing demand for high-performance chips used in ai, smartphones, and other advanced applications [1][5]. the company’s ability to deliver cutting-edge technology is a key driver of its market leadership [GPT].
geopolitical considerations
the semiconductor industry faces ongoing geopolitical tensions and economic uncertainties [4]. tsmc is reportedly scrutinizing its supply chain, potentially excluding taiwanese equipment and material suppliers with high exposure to china [6]. this move reflects the increasing pressure to align with geopolitical objectives and mitigate risks associated with reliance on specific regions [6]. these considerations add complexity to tsmc’s operations and investment decisions [GPT].