July 29, 2025 /SemiMedia/ — Global pure-play semiconductor foundry revenue is expected to grow 17% year-on-year to exceed $165 billion in 2025, according to a new report from Counterpoint Research. The sector is projected to post a compound annual growth rate (CAGR) of 12% from 2021 to 2025, up from $105 billion in 2021.

Growth will be led by advanced manufacturing nodes. Revenue from 3nm processes is forecast to surge over 600% to around $30 billion in 2025, while demand for 5nm and 4nm nodes will continue to rise, generating more than $40 billion. Combined, advanced nodes including 7nm are expected to account for more than half of total foundry revenue in 2025, driven by increasing demand for AI smartphones, AI-powered PCs, AI ASICs, GPUs, and high-performance computing (HPC) chips.

TSMC remains the primary beneficiary in advanced processes, with Samsung and Intel trailing closely behind. Foundries like UMC, GlobalFoundries, and SMIC maintain strong demand in mature nodes, though they may lag in revenue growth compared to leading-edge technologies.

In addition to front-end advances like high-NA EUV lithography, innovation in back-end packaging is gaining momentum. Trends such as HBM memory integration and chiplet-level packaging are emerging as key revenue drivers for the foundry sector.