Global foundry market grows 29 pct in Q2 on strong AI chip demand: report

The global pure-play semiconductor foundry market expanded by 29 percent year-over-year in the second quarter, fueled by a surge in demand for artificial intelligence (AI) chips, according to a report released on Friday by Counterpoint Research. The report highlighted that AI-related orders and the reallocation of production capacities are the primary factors contributing to the current supply-demand imbalances across advanced and mature nodes.

TSMC, operating under Taiwan Semiconductor Manufacturing Co., maintained its dominant position as the market leader, capturing a 73 percent share during the specified period. This performance continued for the second consecutive quarter. Counterpoint Research credited TSMC's success to the mass production of chips utilizing its 2-nanometer process, alongside the expansion of 3-nanometer production capabilities.

Additionally, the report noted supply shortages in mature 8-inch and 12-inch processes as well as advanced packaging techniques as significant contributors to TSMC's strong performance.

Samsung Electronics Co. held the second position in the market, with its market share remaining relatively stable compared to the previous quarter. Samsung Foundry's primary focus is on enhancing the yield rate of the SF2 series. However, the report suggested that demand from SF4 and SF5 segments also plays a crucial role in driving revenue growth for Samsung Foundry. The rise in foundry wafer prices during the first half of the year further bolstered Samsung Foundry's financial performance.