Global semiconductor foundries experienced a strong finish to 2025, driven by robust demand for advanced manufacturing nodes spurred by the artificial intelligence boom. Combined revenue for the top ten foundries reached nearly USD 46.3 billion in the fourth quarter, a 2.6% increase quarter-over-quarter, according to recent data. For the full year, the group generated approximately USD 169.5 billion in revenue, a 26.3% increase compared to 2024 and a new industry record.
The surge in revenue is largely attributed to the tight supply of AI server GPUs and custom AI processors, notably Google’s Tensor Processing Units (TPUs), as reported by TrendForce. This demand is occurring alongside continued strong performance in the mobile sector, with new smartphone launches supporting wafer demand for application processors.
Demand isn’t limited to advanced nodes. Orders for power management ICs, essential components for servers and edge AI applications, are keeping 8-inch fabs operating at high utilization rates, with some suppliers reportedly considering price increases. Utilization rates at 12-inch fabs remained largely stable during the quarter.
TSMC Maintains Dominant Position
Taiwan Semiconductor Manufacturing Company (TSMC) continues to lead the foundry market, securing a 70.4% market share in the fourth quarter of 2025. Despite a slight decline in wafer shipments, TSMC’s quarterly revenue increased by 2% sequentially to USD 33.7 billion. This growth was bolstered by demand for chips used in the iPhone 17 series and orders for its 3-nanometer node technology.
Samsung Gains Ground with Advanced Technologies
Samsung’s foundry division secured the second position, reporting a 6.7% quarter-over-quarter revenue increase to nearly USD 3.4 billion. Shipments of new 2-nanometer products and the production of logic dies for High Bandwidth Memory 4 (HBM4) contributed to this growth, even with slightly lower fab utilization. This performance allowed Samsung to increase its market share to 7.1% and return to profitability, according to TrendForce. Google has become a top five client for Samsung, driven by demand for TPUs.
Growth Across the Foundry Landscape
Several other foundries too experienced growth. SMIC, benefiting from localization efforts in China, saw a 4.5% sequential revenue increase to almost USD 2.49 billion. UMC reported a 0.9% increase to around USD 2 billion, supported by stable orders. GlobalFoundries, driven by demand for data center components, saw an 8.4% revenue increase to USD 1.8 billion.
| Rank | Company | Revenue (USD millions) | Market Share (4Q25) |
|---|---|---|---|
| 1 | TSMC | 33,723 | 70.4% |
| 2 | Samsung | 3,399 | 7.1% |
| 3 | SMIC | 2,489 | 5.2% |
| 4 | UMC | 1,993 | 4.2% |
| 5 | GlobalFoundries | 1,830 | 3.8% |
Looking ahead to 2026, TrendForce anticipates early inventory build-ups for consumer electronics will support fab utilization in the first half of the year. However, rising memory prices could potentially dampen demand for mainstream devices in the latter half, creating uncertainty in the market. The continued innovation in AI, as evidenced by Google’s investment in TPUs – with patent filings significantly increasing in 2026 according to TrendForce – will remain a key driver for the foundry sector.
The semiconductor industry is at a pivotal moment, balancing strong AI-driven demand with potential headwinds from broader economic factors. What impact will rising memory costs have on the overall demand for advanced chips? Share your thoughts in the comments below.
