The global semiconductor Foundry 2.0 market achieved a significant milestone in the third quarter of 2025, with revenue reaching $84.8 billion, a substantial 17% increase year-over-year, according to the latest report from Counterpoint Research. This robust growth is primarily attributed to explosive demand from Artificial Intelligence (AI) and High-Performance Computing (HPC) applications, driving the need for leading-edge manufacturing and advanced packaging.
The "Foundry 2.0" concept expands the traditional definition of foundry services beyond wafer fabrication to include packaging, testing, mask making, and the contribution of non-memory integrated device manufacturers (IDMs). In this accelerated growth cycle, advanced nodes (3nm, 4nm/5nm) and advanced packaging technologies like CoWoS have become the core revenue drivers.
TSMC emerged as the clear winner, capturing a commanding 39% market share in the Foundry 2.0 segment. Its revenue skyrocketed by 41% year-over-year, far outpacing other players and solidifying its leadership in the advanced node and packaging race.
In contrast, the rest of the market saw more modest growth. Revenue for non-TSMC pure-play foundries grew by only 6%, while non-memory IDMs saw a 4% increase. The outsourced semiconductor assembly and test (OSAT) segment performed relatively better with 10% year-over-year growth, benefiting from the overall packaging demand surge.
Counterpoint forecasts the full-year 2025 revenue growth for the Foundry 2.0 market to be around 15%, with the pure-play foundry segment potentially growing as high as 26%. However, a near-term bottleneck is expected. As both advanced node and advanced packaging capacities are currently running at full utilization, significant sequential growth for TSMC in the fourth quarter is seen as unlikely, highlighting the ongoing supply constraints in cutting-edge semiconductor production.
ICgoodFind's Insight
The impressive Q3 results underscore that the AI-driven demand wave is fundamentally reshaping the foundry landscape. Success is increasingly tied to mastering the integrated "Foundry 2.0" value chain of leading-edge logic and advanced packaging, a domain where TSMC has built a formidable lead.
