The revenue of Taiwan's foundry industry is expected to increase by 12.3% quarter-on-quarter to reach US$31.42 billion in the second quarter of 2025, driven by continued strong demand for AI and HPC chips, a rebound in handset-use application processor (AP) shipments, and the impact of US-China tariff effects, according to a DIGITIMES estimate.
Notably, growth momentum may slow in the third quarter due to the high base established in the second quarter. However, the availability of new production capacity in advanced process nodes, price hikes, and increased inventory stocking due to tariff uncertainties are expected to continue supporting operational momentum.
That said, rising geopolitical risks and continued uncertainty over US semiconductor tariff policies may impact the business deployment of Taiwan's wafer foundries.
Chart 1: Key factors affecting Taiwan wafer foundry industry in 2Q25 and 3Q25
Chart 2: Global major IT products on-year shipment growth, 2022-2025
Chart 3: Taiwan key wafer foundry revenues, 1Q24-3Q25 (US$b)
Chart 5: Taiwan wafer ASP of major foundries, 1Q24-3Q25 (US$/8-inch wafer)
Chart 7: Taiwan foundry revenue share by manufacturing node, 1Q24-3Q25
Chart 8: Taiwan wafer foundries capacity expansion plans overseas, 2025
Chart 9: Taiwan wafer foundries capacity expansion plans overseas, 2025
Chart 11: Taiwanese foundries' revenue outlook and key topics
