TSMC Q2 Market Share Soars to 70% as Foundry Dominance Intensifies

Taiwan Semiconductor Manufacturing Company (TSMC) has dramatically expanded its lead in the global chipmaking industry. New data confirms its market share surged past 70% in the second quarter of 2025. This growth solidifies its position as the world’s most dominant semiconductor foundry. The wider industry also experienced significant quarterly growth.

According to TrendForce, the total foundry industry revenue grew by 14.6% last quarter. This surge was fueled by strong demand for AI, smartphone, and server chips. National subsidies in key regions also contributed to this robust expansion.

TSMC Extends Its Commanding Market Lead

TSMC’s revenue share reached 70.2% in Q2 2025. This is a notable increase from its 67.6% share the previous quarter. The company’s own quarterly revenue growth was an impressive 18.5%.

Its earnings for the period are estimated at $30.239 billion. That figure is up from $25.517 billion in Q1. This performance underscores its unmatched scale and execution.

Samsung and Other Foundries Face Challenges

One company’s gain often means another’s loss in this competitive sector. Samsung Foundry, TSMC’s closest rival, saw its market share decline. Its share dropped from 7.7% down to 7.3% for the same period.

The Korean chipmaker’s quarterly revenue did grow by 9.2%. It generated an estimated $3.159 billion in Q2. However, this is only a fraction of the revenue TSMC achieved.

TSMC’s Future Roadmap Promises Further Growth

TSMC’s dominance is projected to grow even stronger. Its market share is estimated to reach 75% by 2026. This forecast is partly driven by soaring demand for its advanced 2nm technology.

Mass production of 2nm chips is scheduled to begin in late 2025. Apple has reportedly secured the initial supply of these wafers. Major orders from Qualcomm, MediaTek, and Broadcom will further catalyze growth.

To maintain its lead, TSMC is planning a new facility in Taiwan. This plant will focus on mass-producing even more advanced 1.4nm chips. The initial investment for this project is said to be a massive $49 billion.

TSMC’s current trajectory suggests its foundry market share will remain unassailable for the foreseeable future. Its massive investments and execution continue to set the industry pace.

Info at your fingertips

What was TSMC’s market share in Q2 2025?

TSMC’s revenue market share reached 70.2% in the second quarter of 2025. This was a significant increase from 67.6% the previous quarter. The growth highlights its expanding dominance.

How does Samsung Foundry compare to TSMC?

Samsung’s market share fell to 7.3% in the same period. Its revenue was estimated at $3.159 billion. This is vastly overshadowed by TSMC’s $30.239 billion.

What is driving TSMC’s growth?

Demand for advanced AI, server, and smartphone chips is a major driver. The upcoming production of 2nm technology is also a key factor. Major clients like Apple and Qualcomm are fueling orders.

When will TSMC start 2nm production?

Mass production of 2nm chips is slated for the fourth quarter of 2025. Apple is expected to be the first customer to use these wafers. Other companies will follow soon after.

What are TSMC’s future plans?

The company is planning a new facility for 1.4nm chip manufacturing. The initial investment is reported to be around $49 billion. This move aims to secure its technological lead for years to come.