According to market research firm Counterpoint Research on the 30th, global “Foundry 2.0” market revenue in the second quarter of this year reached $96.6 billion, up 25% year-over-year and 11% quarter-over-quarter. The growth rate accelerated compared to the 24% year-over-year growth recorded in the first quarter.
“Foundry 2.0” is a concept that encompasses not only pure-play foundries but also non-memory integrated device manufacturers (IDMs), outsourced semiconductor assembly and test (OSAT) companies, and photomask manufacturers. Global “Foundry 2.0” market revenue includes not only AI graphics processing units (GPUs) but also application-specific integrated circuits (ASICs), server central processing units (CPUs), networking chips, and power management integrated circuits (PMICs).
Revenue in the pure-play foundry market reached $54.9 billion, a 29% increase year-over-year. TSMC’s revenue rose 34% to $40.2 billion. TSMC’s share of the overall Foundry 2.0 market also expanded from 38% last year to approximately 42% in the second quarter of this year. Growth among foundry companies other than TSMC also accelerated. Revenue for non-TSMC pure-play foundries rose 18% year-over-year, doubling the growth rate recorded in the first quarter (9%). China’s SMIC grew by 36%, and Nexchip by 21%. SamsungElectronics’ foundry division maintained its second-place position with a market share of approximately 4% in the second quarter.
Senior Research Analyst William Lee stated, “Samsung and Intel’s foundry businesses are also benefiting as customers seek additional supply sources,” adding, “Samsung maintained its position as the second-largest foundry player with a market share of approximately 4% in the second quarter of 2026, and Intel’s EMIB-T packaging was adopted for Google’s next-generation TPU.” However, he added, “It is still too early for either company to fully replace TSMC in terms of the scale of its advanced processes, yield rates, and packaging execution capabilities.”
The growing demand for AI semiconductors is also spilling over into the back-end of the process. OSAT market revenue reached $12.6 billion, up 22% year-over-year and 12% quarter-over-quarter. Demand for advanced packaging and wafer probing and testing drove this growth. Revenue for ASE and Amkor increased by 24% and 26%, respectively, compared to the same period last year.
As AI chips grow in size and design complexity, advanced packaging production capacity has emerged as a key variable. Counterpoint projected that TSMC’s CoWoS supply-demand gap would narrow from about 20% this year to around 10% next year. It also predicted that the role of OSAT companies would expand as testing times and processes lengthen.
Brady Wang, a research analyst at Counterpoint, stated, “With pure-play foundries, non-memory IDMs, and OSATs all recording double-digit growth, the AI investment cycle is spreading across the entire value chain,” adding, “As AI processors grow in both size and design complexity, advanced packaging remains a major bottleneck.”
Counterpoint projected that over the next five years, more than 130 million GPUs and AI ASICs utilizing advanced packaging methods—such as HBM—that integrate memory with compute chips will be shipped. As a result, revenue from AI accelerators is expected to reach approximately $2 trillion.
