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TSMC Captures 70% of Global Chip Market as AI Demand Soars in 2025

Taiwan Semiconductor Manufacturing Co. (TSMC) saw its global foundry market share climb to nearly 70% in 2025, driven by booming demand for artificial intelligence processors. The chipmaker's sales surged 36.1% year-on-year to $122.54 billion, solidifying its dominant position. Samsung Electronics was a distant second with a 7.2% market share, while China's SMIC ranked third. Strong demand for TSMC's advanced 3-nanometer manufacturing process helped increase average selling prices and boost revenue despite a slight dip in quarterly shipments.

Key Points: TSMC Nears 70% Global Foundry Market Share in 2025

  • TSMC revenue hit $122.54B in 2025
  • Market share rose to 69.9% from 64.4%
  • Samsung a distant second with 7.2% share
  • Strong AI demand for 3nm process boosted prices
2 min read

TSMC rides AI wave to net nearly 70% of global foundry market in 2025

TSMC's revenue surged 36% to $122.5B, capturing nearly 70% of the global foundry market in 2025, driven by booming AI chip demand.

"TSMC's closest rival, Samsung Electronics, was a distant second - Focus Taiwan report"

Taipei, March 14

Taiwan Semiconductor Manufacturing Co saw its share of the global foundry market rise to almost 70 per cent in 2025 amid booming demand for artificial intelligence.

Focus Taiwan, quoting the market information advisory firm TrendForce Corp, said that the contract chipmaker posted USD 122.54 billion in sales, up 36.1 per cent from a year earlier, accounting for 69.9 per cent of the global market. Its share was up from 64.4 per cent in 2024."

TSMC's closest rival, Samsung Electronics, was a distant second, posting USD 12.63 billion in sales, down 3.9 per cent from a year earlier, for a 7.2 per cent share of the global market.

"In the fourth quarter of 2025 alone, TSMC's share of the global foundry market stood at 70.4 per cent, down from 71.0 per cent in the third quarter, while its sales rose 2.0 per cent from a quarter earlier to USD 33.72 billion," Focus Taiwan report highlighted.

Although TSMC's shipments in the October to December period fell slightly from a quarter earlier, strong demand for its 3-nanometer process pushed average selling prices higher, boosting revenue, the TrendForce said in the Focus Taiwan report.

The global foundry market's 10 largest firms generated USD 169.47 billion in combined sales in 2025, up 26.3 per cent from a year earlier.

"China's Semiconductor Manufacturing International Corp (SMIC) ranked third with USD 9.33 billion in sales, or a 5.32 per cent market share, ahead of Taiwan's United Microelectronics Corp with USD 7.63 billion, or 4.35 per cent, and US-based GlobalFoundries with USD 6.79 billion, or 3.87 per cent," the report noted.

Huahong Group of China came in sixth with USD 4.50 billion, or 2.6 per cent, followed by Israel's Tower Semiconductor Ltd (USD 1.57 billion, 0.89 per cent), Taiwan's Vanguard International Semiconductor Corp (USD 1.56 billion, 0.89 per cent), China's NexChip Co (USD 1.51 billion, 0.86 per cent), and Taiwan's Powerchip Semiconductor Manufacturing Corp. (USD 1.40 billion, 0.80 per cent), the report concluded.

- ANI

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Reader Comments

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Sarah B
The AI boom is real! 70% market share is mind-boggling. It shows how critical advanced manufacturing is. India has the talent in design (so many engineers work at these firms), but we are decades behind in cutting-edge fabrication. The Dholera plant can't come online soon enough.
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Priya S
Look at the gap between TSMC and Samsung! From 64% to nearly 70% in a year is phenomenal growth. It's a bit worrying though. So much of the world's tech, from phones to AI servers, depends on one company in a geopolitically sensitive region. Diversification is a must.
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Rohit P
Good to see SMIC holding the third spot. The global semiconductor landscape is definitely shifting. For India, partnerships with multiple players, including TSMC, Samsung, and maybe even SMIC for mature nodes, could be a smarter strategy than putting all eggs in one basket. Jai Hind!
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Karthik V
Respectfully, while this is a business achievement, the article highlights a deep vulnerability. As an Indian consumer, every device I buy likely has a TSMC chip. We need our own fabs, not just for pride, but for national security and job creation. The government's incentives are a step, but execution is key.
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Michael C
The 3-nanometer process driving prices up is the key takeaway. It's not just about making more chips, but making the most advanced ones. This is where the real margin and power lie. India's focus should be on attracting R&D for the next-gen tech, not just chasing older manufacturing processes.

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