Chip Talk > Foundry Industry Rankings Q1 2025: TSMC Dominates, Samsung Struggles
Published June 10, 2025
The semiconductor foundry industry, a critical pillar of the global tech ecosystem, continues to evolve with shifting market dynamics and competitive pressures. According to a recent report by TrendForce, a leading market research firm, Taiwan Semiconductor Manufacturing Company (TSMC) solidified its position as the dominant player in the first quarter of 2025, while competitors like Samsung Foundry and others faced challenges in maintaining their ground. This blog post dives into the latest foundry rankings, key market trends, and the performance of the top players in Q1 2025.
Foundry vendors are specialized companies that manufacture semiconductor chips for other firms in large-scale facilities known as fabs. These chips power everything from smartphones and AI systems to consumer electronics and automotive systems. In Q1 2025, the global foundry industry generated $36.4 billion in revenue, a 5.4% decline from Q4 2024. Despite the seasonal downturn, factors like last-minute rush orders to avoid U.S. tariffs and China’s consumer subsidy program helped mitigate the slump.
TrendForce’s Q1 2025 foundry rankings highlight TSMC’s unchallenged dominance, with a commanding 67.6% market share. Below is the full list of the top 10 foundry vendors, their market shares, and revenue performance:
Notably, Vanguard climbed from eighth to seventh place, while Tower slipped from seventh to eighth. The rest of the rankings remained unchanged from Q4 2024. Intel, despite its ambitions to break into the foundry market, did not make the top 10.
The foundry industry faced a seasonal revenue dip in Q1 2025, softened by two major factors:
Below, we analyze the performance of each major foundry vendor in Q1 2025.
TSMC maintained its iron grip on the foundry market with a 67.6% share and $25.5 billion in revenue, down just 5% from Q4 2024. Despite a seasonal decline in smartphone-related wafer shipments, TSMC benefited from strong demand for AI high-performance computing (HPC) chips and urgent TV-related orders tied to tariff avoidance. Looking ahead, TSMC is set to ramp up its cutting-edge 2nm process in H2 2025, transitioning to gate-all-around (GAA) nanosheet field-effect transistor (FET) technology, which promises improved performance and efficiency.
Samsung Foundry, the world’s second-largest vendor, continues to struggle, with its market share dropping to 7.7% from 11% in Q1 2024. Revenue fell 11.3% quarter-over-quarter to $2.89 billion, hampered by poor chip yields, limited benefits from China’s subsidies, and U.S. restrictions on advanced node production. Like TSMC, Samsung aims to introduce its 2nm nanosheet technology in H2 2025, but it faces an uphill battle to regain market share.
China’s SMIC, the third-largest foundry, posted a 1.8% revenue increase to $2.25 billion, narrowing the gap with Samsung. Early stocking driven by U.S. tariffs and Chinese subsidies helped offset declines in average selling prices (ASPs). SMIC made headlines with its 5nm process, used to manufacture Huawei’s Kirin X90 chip for a new PC line. Notably, SMIC achieved this without extreme ultraviolet (EUV) lithography, relying instead on 193nm immersion lithography and multiple patterning. Analysts at TD Cowen suggest SMIC’s 5nm process is closer to a “5.5nm” technology, still in the pilot stage with low yields.
Taiwan’s UMC held its fourth-place ranking with $1.76 billion in revenue, down 5.8% from Q4 2024. Early customer stocking stabilized wafer shipments and capacity utilization, but annual pricing adjustments led to lower ASPs. UMC remains a reliable player in mature nodes, serving diverse markets like automotive and consumer electronics.
U.S.-based GlobalFoundries (GF) saw a 13.9% revenue drop to $1.58 billion, with its market share slightly shrinking. GF’s customer base, largely outside China, missed out on the subsidy-driven demand boost. Seasonal weakness and declining ASPs further impacted performance. GF continues to focus on specialty processes for automotive, IoT, and industrial applications.
China’s Hua Hong Group recorded $1.01 billion in revenue, down 3% quarter-over-quarter. New capacity from its HHGrace subsidiary and selective low-price strategies attracted orders, but post-merger challenges with HLMC and other subsidiaries weighed on performance.
Taiwan’s Vanguard climbed to seventh place with a 1.7% revenue increase to $363 million. Tariff- and subsidy-driven pre-stocking boosted utilization rates, though a higher mix of low-end products reduced ASPs. Vanguard’s focus on analog and mixed-signal chips positions it well for niche markets.
Israel’s Tower fell to eighth place with $358 million in revenue, down 7.4%. The company faced seasonal weakness and lacked exposure to China’s subsidy program, impacting its performance. Tower specializes in analog and RF technologies for automotive and communication markets.
China’s Nexchip, a joint venture with Taiwan’s Powerchip, rose to ninth place with $353 million in revenue, up 2.6%. Urgent orders tied to U.S. tariffs and Chinese subsidies fueled growth, positioning Nexchip as a growing player in the foundry space.
Taiwan’s Powerchip (PSMC) rounded out the top 10 with $327 million in revenue, down 1.8%. Weak memory foundry demand was offset by rush consumer orders, maintaining stable utilization rates.
The foundry industry is navigating a complex landscape shaped by geopolitical tensions, technological advancements, and shifting consumer demand. TSMC’s dominance is unlikely to waver, thanks to its leadership in advanced nodes like 2nm and strong demand for AI and HPC chips. Samsung Foundry, however, must address yield issues and diversify its customer base to close the gap. SMIC’s progress in 5nm production, despite U.S. restrictions, signals China’s growing self-reliance in semiconductors.
The U.S. tariff landscape and China’s subsidy program will continue to influence order patterns, particularly for Chinese foundries. Meanwhile, vendors like UMC, GlobalFoundries, and Vanguard are carving out niches in mature and specialty nodes, catering to diverse applications.
As the industry moves toward H2 2025, all eyes will be on TSMC and Samsung’s 2nm rollouts, which could redefine the competitive landscape. For now, TSMC remains the foundry king, while its rivals scramble to keep pace.
Join the world's most advanced semiconductor IP marketplace!
It's free, and you'll get all the tools you need to discover IP, meet vendors and manage your IP workflow!
Join the world's most advanced AI-powered semiconductor IP marketplace!
It's free, and you'll get all the tools you need to advertise and discover semiconductor IP, keep up-to-date with the latest semiconductor news and more!
Plus we'll send you our free weekly report on the semiconductor industry and the latest IP launches!
