TSMC Strengthens Grip on Foundry 2.0 Market

The rapid growth in demand for artificial intelligence (AI) semiconductors has sparked the emergence of the 'Foundry 2.0' market, which encompasses the entire semiconductor manufacturing ecosystem. This market is experiencing significant expansion, with Taiwan's TSMC, the world's largest foundry company, solidifying its dominance.

In the second quarter of the current year, the global Foundry 2.0 market revenue reached a record high of $96.6 billion, marking a 25% increase compared to the same period last year. The surge in demand for AI GPUs and application-specific integrated circuits (ASICs) has led to a rise in the utilization rates of advanced processes and advanced packaging.

As a result, TSMC's share in the Foundry 2.0 market has climbed to 42%, up from 38% in the first quarter of the year. Samsung Electronics, on the other hand, has remained at a 4% market share. While the foundry market is expanding due to the increasing demand for AI semiconductors, it appears that the competitive landscape is solidifying around TSMC.

This trend is driven by the necessity to secure advanced microfabrication processes and large-scale production capacity alongside advanced packaging. To address the demands of major clients and respond to the growing need for localization of semiconductor production, TSMC is actively expanding its production capacity. The company is considering building a second wafer plant in Texas, United States, as well as establishing a semiconductor production ecosystem connecting Texas and Arizona.

In contrast, Samsung Electronics is focusing on restructuring its business around AI and high-performance computing (HPC) and has seen a tripling of its foundry clients since launching as an independent business unit in 2017.