The foundry market revenue reached a new record high, hitting $38.48 billion, fueled by the growing demand for AI-powered chips, flagship smartphone processors, and next-generation PC platforms. The foundry market revenue saw an impressive 10% quarter-over-quarter (QoQ) growth, demonstrating the industry’s resilience and strength.
TSMC Maintains Dominance in Advanced Process Nodes
The foundry market revenue was largely driven by Taiwan Semiconductor Manufacturing Company (TSMC), which secured 67% market share. The company’s revenue surged to $26.85 billion, primarily due to its leadership in advanced process nodes and high-value wafer shipments. As a dominant player in the foundry market revenue, TSMC continues to shape the semiconductor industry.
U.S. Tariffs and Chinese Consumer Policies Impact the Market
The foundry market revenue was influenced by new U.S. trade tariffs and China’s consumer subsidy program. A surge in orders for televisions, PCs, and notebooks bound for the U.S. was recorded, supporting the foundry market revenue even as demand for mature process nodes softened.
Samsung Foundry Struggles Amid Revenue Decline
Despite strong demand, Samsung Foundry faced a 1.4% QoQ revenue decline, bringing its earnings to $3.26 billion. The report indicates that while Samsung gained new advanced-node customers, revenue losses from major existing clients offset potential growth.
SMIC, UMC, and GlobalFoundries Performance
SMIC: Overcoming Challenges with Capacity Expansion
China’s SMIC played a key role in the market growth, securing $2.2 billion in revenue, marking a 1.7% QoQ increase. Despite customer inventory adjustments, SMIC’s optimized product mix and new 12-inch capacity expansion helped sustain growth.
UMC: Stable Demand Despite ASP Pressures
UMC also contributed to the industry, reporting $1.87 billion in revenue, with only a slight 0.3% decline QoQ. High capacity utilization and pre-placed customer orders helped maintain stability.
GlobalFoundries: Growth Despite ASP Challenges
GlobalFoundries saw 5.2% QoQ revenue growth, reaching $1.83 billion. Increased wafer shipments offset slight ASP declines.
Nexchip Gains Market Share Amid Localization Efforts
HuaHong Group and Tower Semiconductor Maintain Growth
HuaHong Group ranked sixth, with 6.1% QoQ growth to $1.04 billion. Meanwhile, Tower Semiconductor maintained its seventh position, with a 4.5% QoQ revenue increase to $387 million.
VIS Faces Consumer Demand Decline
Vanguard International Semiconductor (VIS) saw a 2.3% QoQ revenue decline to $357 million. Despite weaker consumer demand, ASP improvements helped partially mitigate shipment declines.
Nexchip Surpasses PSMC, Moving to Ninth Place
Among the top 10 foundries, Nexchip was the only company to climb rankings. Nexchip posted 3.7% QoQ revenue growth to $344 million, surpassing PSMC, which dropped to tenth place.
Key Statistics for 4Q24 Foundry Market Revenue
| Rank | Foundry | 4Q24 Revenue (Billion USD) | QoQ Growth (%) | Market Share (%) |
|---|---|---|---|---|
| 1 | TSMC | 26.85 | +10% | 67% |
| 2 | Samsung Foundry | 3.26 | -1.4% | 8.1% |
| 3 | SMIC | 2.2 | +1.7% | 5.5% |
| 4 | UMC | 1.87 | -0.3% | – |
| 5 | GlobalFoundries | 1.83 | +5.2% | – |
| 6 | HuaHong Group | 1.04 | +6.1% | – |
| 7 | Tower Semiconductor | 0.387 | +4.5% | – |
| 8 | VIS | 0.357 | -2.3% | – |
| 9 | Nexchip | 0.344 | +3.7% | – |
| 10 | PSMC | – | – | – |
Industry Leaders Comment on Market Trends
TSMC CEO on AI-Driven Growth
“The demand for AI-powered chips continues to outpace expectations, driving substantial growth in our advanced process node segment.”
TrendForce Analyst on U.S.-China Trade Impacts
“The new U.S. tariffs have created a rush for semiconductor orders, significantly impacting supply chains and pricing strategies in 2024.”
Samsung Spokesperson on Customer Retention
“While we face short-term challenges, our focus remains on expanding our advanced-node customer base to sustain long-term growth.”
Conclusion: Strong Momentum into 2025
The semiconductor industry reached record-breaking levels, with TSMC leading the charge in advanced chip production. Despite challenges from U.S.-China trade tensions and seasonal demand shifts, the market remained strong. As 2025 unfolds, AI advancements, localization policies, and emerging semiconductor technologies will continue shaping the future of the foundry industry.
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