August 10, 2026 / SemiMedia / — The global semiconductor foundry market is becoming increasingly divided as demand for generative AI drives investment toward advanced process technologies.

Leading foundries are allocating more resources to advanced nodes, while some mature-node capacity is gradually being reduced. This shift is creating additional opportunities for Chinese foundries to secure orders for mature-process chips.

TrendForce’s global foundry revenue ranking for the first quarter of 2026 showed that TSMC generated more than $35.8 billion in quarterly revenue. Its market share rose to 72.3%, reinforcing its dominant position in advanced-node manufacturing.

Chinese foundries also increased their presence in the ranking. Semiconductor Manufacturing International Corporation placed third globally, followed by Hua Hong Semiconductor in sixth place and Nexchip in eighth.

The inclusion of all three companies among the world’s ten largest foundries reflects the growing scale of China’s mature-node manufacturing industry.

Major foundries including TSMC and Samsung are directing investment toward higher-value 12-inch advanced processes while reducing their focus on 8-inch production.

However, power-management ICs, display-driver chips, sensors and power semiconductors continue to depend heavily on mature processes. As international foundries reduce 8-inch capacity, more of these orders are moving to Chinese manufacturers.

SEMI expects global 8-inch wafer capacity to reach 7.7 million wafers per month in 2026. Chinese foundries are projected to account for more than 1.7 million wafers, representing approximately 22% of worldwide capacity.

Restrictions on access to advanced semiconductor equipment have also encouraged Chinese manufacturers to concentrate investment on process technologies ranging from 90nm to 55nm. Capacity is expanding for applications including power management, display drivers, automotive electronics and industrial sensors.

China’s foundry industry is now developing along two tracks: maintaining high utilization at existing 8-inch facilities and expanding 12-inch mature-node production. SMIC and Hua Hong continue to operate extensive 8-inch capacity, while companies including Nexchip are increasing investment in 12-inch mature-process lines.