Taiwan Semiconductor Manufacturing’s (NYSE:TSM) share of the semiconductor foundry market surged to 38% during the second quarter of calendar year 2025 compared to 31% in the same quarter one year prior, according to data by Counterpoint Research.
TSMC’s market share gains came on top of a 19% year-over-year surge in foundry revenue across the entire sector. This growth was driven by a combination of artificial intelligence demand on advanced processes and packaging, as well as pull-in from China’s subsidy program. Counterpoint expects this to increase by mid-single digits during the third quarter of 2025.
“As advanced packaging technologies gain importance, we believe chip vendors will increasingly rely on advanced packaging to enhance the performance of their chip solutions,” said Counterpoint senior analyst William Li. “Given TSMC’s current technological capabilities and strong customer relationships, the company is expected to remain not only a leader in advanced process node but also a front-runner in advanced packaging for the foreseeable future.”
While TSMC dramatically increased its market share year over year during the second quarter, most other foundry players remained static or demonstrated slight losses. For example, Texas Instruments (NASDAQ:TXN) and Intel (NASDAQ:INTC) both maintained 6% market share during both quarters. Meanwhile, Infineon’s (OTCQX:IFNNY) share slipped to 5% from 6%, and Samsung (OTCPK:SSNLF) declined to 4% from 5%.
“The traditional peak season for consumer electronics, the accelerating AI applications/orders, and the existing subsidy policy in the Chinese market will be major drivers in Q3,” said Counterpoint senior analyst Jake Lai.