October 15, 2025 /SemiMedia/ — Taiwan Semiconductor Manufacturing Co. (TSMC) expanded its leadership in the global pure-play foundry market, capturing 71% of total market share in the second quarter of 2025, according to Counterpoint Research. The figure marks a three-point rise from the previous quarter and a six-point increase year-on-year.

Counterpoint reported that the overall foundry market grew 33% year-over-year in Q2, driven largely by surging demand for AI processors. TSMC absorbed most of this growth through strong production of its 3-nanometer process and high utilization rates for 4nm and 5nm nodes supporting AI GPUs.

The firm’s continued expansion in advanced CoWoS packaging capacity has also reinforced its pivotal role in AI semiconductor supply chains.

Samsung Electronics ranked second with an 8% market share, though down one point from the previous quarter. Counterpoint attributed Samsung’s stability to recovering demand for smartphones and consumer electronics.

China’s Semiconductor Manufacturing International Corp. (SMIC) and Taiwan’s United Microelectronics Corp. (UMC) followed, each holding 5% of the market, while U.S.-based GlobalFoundries stood at 4%.

Looking ahead, Counterpoint expects utilization rates for advanced processes and overall wafer shipments to continue rising through the second half of 2025, supported by ongoing AI-driven demand.