Global semiconductor “foundry 2.0” market’s revenue surged by 19% year-on-year (YoY) in the second quarter (2Q 2025), largely driven by robust and sustained AI demand on both advanced process and advanced packaging, and also benefited from pull-in demand by China subsidy program, according to Counterpoint Technology Market Research’s Foundry Revenue Tracker by Nodes. Counterpoint expects this momentum will continue to accelerate, resulting in a mid-single digit QoQ revenue growth into Q3 2025.

For pure-foundry market, TSMC’s market share rose from 31% in 2Q 2024 to 38% in 2Q 2025, firmly maintaining its position as the market leader, and accounting for 75% of the YoY revenue growth in foundry 2.0 market in 2Q (vs.10% contribution from other pure-foundry players). The 44% YoY revenue growth was largely due to 3nm ramp up, high utilization rate in 4/5nm from AI GPU, and CoWoS expansion, which we believe will continue to be the major growth driver into H2 2025.

OSAT sector delivers a 11% YoY revenue growth in 2Q 2025 (vs. 5% YoY in 2Q 2024) as ASE contributed most of revenue growth, while KYEC delivered the strongest YoY growth (30%+ YoY), benefiting from AI GPUs. Advanced packaging is set to provide new growth momentum for OSAT companies. AI GPU and AI ASIC will be the major growth drivers for OSAT vendors in 2025/2026, with potential upside from incremental orders from other sectors. The revenue growth in Q2 echoes our views of advanced packaging set to provide new growth momentum for OSAT companies.

“As advanced packaging technologies gain importance, we believe chip vendors will increasingly rely on advanced packaging to enhance the performance of their chip solutions. 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,” said Senior Analyst William Li.

Non-memory IDMs returned to a 2% revenue growth in 2Q 2025 (from -9% YoY in 2Q 2024), mainly driven by Texas Instruments Inc.’s 16% YoY revenue expansion. Due to clients’ inventories being at a relatively low level, orders’ visibility was relatively solid compared to previous quarter, and we continue to see a warm recovery in industrial sector, which will likely drive the revenue growth. However, automotive sector have yet to show a significant order recovery in 1H 2025, and we expect the rebound to arrive later in 2H.

“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 Senior Analyst Jake Lai. “We expect foundry utilization rate in advanced process node in Q3 2025 and wafer shipment across pure-foundry vendor will continue to grow.”

By: DocMemory
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