DIGITIMES observes that global wafer foundry revenue surpassed US$200 billion in 2025 and, driven by AI-related demand, is projected to reach US$250 billion in 2026. However, rising costs for key electronic components and escalating geopolitical tensions present downside risks to the industry.
In the competitive landscape, TSMC is expected to further reinforce its moat through leadership in advanced process technologies and advanced packaging. Meanwhile, competition for the second-largest share of the foundry market will intensify further.
Chinese foundries, supported by government policies, aggressive capacity expansion, and continued progress in advanced process technologies, are poised to place increasing competitive pressure on global foundry players.
Chart 2: Global top-10 wafer foundries revenue and market share, 2024-2025 (US$b)
Chart 3: Global wafer foundries revenue share by region, 2021-2025
Chart 6: Global wafer foundry monthly capacity at year-end, 2022-2026 (k 8-inch wafers)
Chart 8: Global wafer foundries capacity share by region, 2025-2026
Chart 10: TSMC CoWoS monthly capacity at year-end, 2022-2026 (k 12-inch wafers)
Chart 11: Estimated impact of the 2026 Iran war on foundry industry
Chart 12: Biden export controls on AI chips and direction of Trump new rules and control
Chart 14: Summary of global foundry industry outlook and competitive landscape, 2026
