Taiwan wafer foundry industry, 1Q 2026 and 2026 forecast

DIGITIMES estimates that in 2026, continued strong AI demand and reduced policy disruption following the release of the Section 232 semiconductor investigation results will drive robust revenue growth in Taiwan's wafer foundry industry, with year-on-year growth projected to approach 30%, reaching a new record high.

However, since the main growth driver comes from advanced process nodes, Taiwanese foundries are accelerating strategy adjustments for their mature processes. Additionally, rising memory prices affecting consumer products and ongoing US policy uncertainty will remain key challenges for Taiwan's wafer foundry industry in 2026.

Compared with DIGITIMES' relatively conservative outlook in the fourth quarter of 2025, the rollout of the US Section 232 semiconductor investigation findings and the completion of Taiwan–US trade agreement negotiations in early 2026 have reduced geopolitical risks. Combined with sustained strong AI demand driving foundry orders for Taiwanese firms, DIGITIMES has raised its 2026 revenue outlook for Taiwan's wafer foundry industry, projecting annual revenue to exceed US$170 billion and year-on-year growth of up to 30%, highlighting the industry's strong momentum.