This article first appeared on GuruFocus.
Global semiconductor foundry revenue rose about 17% year over year to roughly $84.8 billion in the third quarter of 2025, supported by strong demand for artificial intelligence chips built on advanced manufacturing nodes, according to a research note from Counterpoint Research.
Taiwan Semiconductor Manufacturing Company (NYSE:TSM) widened its lead, with market share edging up to about 72%. The gains followed higher output of its 3-nanometer process and solid utilization of 4- and 5-nanometer capacity, used heavily by AI accelerator customers such as Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD), and Broadcom (NASDAQ:AVGO).
TSMC’s foundry revenue grew more than 40% from a year earlier, outpacing the broader market. Counterpoint said most rival foundries posted slower growth, with non-TSMC players collectively expanding revenue by about 6%, reflecting softer orders after earlier tariff-related demand but some support from China’s subsidy programs.
Looking ahead, analysts said capacity limits at advanced nodes and constraints in advanced chip packaging, known as CoWoS, may cap sequential growth in the fourth quarter. Full-year 2025 foundry revenue growth is estimated at around 15%.
Counterpoint expects the pure-play foundry segment to grow at a faster pace, helped by continued shipments of AI GPUs and custom AI chips. Texas Instruments (NASDAQ:TXN), Intel (NASDAQ:INTC), Infineon (IFNNY), and Samsung Electronics (SSNLF) maintained mid-single-digit market shares.