TSMC Dominates Semiconductor Market with Record 70% Share in Q2 2025

Reviewed byNidhi Govil

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TSMC achieves unprecedented 70.2% market share in the global semiconductor foundry industry, driven by AI chip demand and advanced manufacturing processes.

TSMC's Unprecedented Market Dominance

Taiwan Semiconductor Manufacturing Company (TSMC) has achieved a remarkable milestone in the second quarter of 2025, capturing an unprecedented 70.2% share of the global semiconductor foundry market

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. This dominant position comes as the company reported a staggering revenue of $30.24 billion for the quarter, marking an 18.5% increase from the previous quarter .

Source: pcgamer

Source: pcgamer

Industry-Wide Growth and TSMC's Success Factors

The global foundry industry experienced significant growth, with total revenue reaching $41.7 billion, a 14.6% increase quarter-over-quarter

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. TSMC's success can be attributed to several factors:

  1. Surging demand for AI accelerators, smartphones, and next-generation PCs
  2. Process leadership in advanced manufacturing nodes
  3. Strong contracts with major clients like Apple and Nvidia
  4. Advanced packaging capabilities crucial for high-performance computing

Nearly three-quarters of TSMC's sales now come from 7nm nodes and below, with 3nm alone accounting for approximately 25% of wafer revenue

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Competitive Landscape

While TSMC's market share has grown, its competitors have struggled to keep pace:

  • Samsung Foundry: Secured second place with 7.3% market share and $3.16 billion in revenue, growing 9.2% quarter-over-quarter

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  • SMIC: Ranked third with 5.1% market share but experienced a 1.7% revenue decline due to advanced-node production issues

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  • GlobalFoundries and UMC: Posted gains of 6.5% and 8.2% respectively, catering to clients preferring established and mature process technologies

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Source: Wccftech

Source: Wccftech

Future Outlook and Challenges

TSMC's dominance is expected to continue, with projections suggesting its market share could reach 75% by 2026

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. The company is preparing to commence mass production of 2nm chips in Q4 2025 and is investing $49 billion in a new facility for 1.4nm chip production

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However, TSMC faces some challenges:

  1. Potential pricing pressures as advanced nodes become more expensive
  2. Geopolitical tensions affecting global chip supply chains
  3. Competition from Samsung's upcoming 2nm GAA process and other rivals' investments

Impact on Consumers and Industry

For consumers and the tech industry, TSMC's dominance has mixed implications:

  • Increased availability of advanced chips for AI, smartphones, and PCs
  • Potential for higher costs due to TSMC's pricing power and expensive new nodes
  • Concentration of critical chip production in a single company, raising supply chain concerns

As TSMC continues to expand its technological lead and market share, the semiconductor industry landscape is likely to remain heavily tilted in its favor for the foreseeable future.

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