The global Foundry 2.0 market's revenue rose by 17% year-on-year (YoY) in the third quarter to reach $84.8 billion.
Dec. 24, 2025 –
The semiconductor industry has formally entered the “Foundry 2.0” era, a phase defined by the deep integration of manufacturing, assembly and testing, profitably driven by the global AI boom. And according to Counterpoint Technology Market Research’s latest Foundry Revenue, Yield and Utilization Rate by Node Tracker, the global Foundry 2.0 market’s revenue rose by 17% year-on-year (YoY) in the third quarter to reach $84.8 billion.
The double-digit growth was primarily fueled by sustained demand for AI GPUs across both front-end manufacturing and back-end advanced packaging, with pure-play foundries like TSMC leading the charge and Chinese vendors benefiting from domestic subsidy programs.
The traditional “Foundry 1.0” definition—focused solely on chip manufacturing—is no longer sufficient to capture current sector dynamics. Counterpoint’s “Foundry 2.0” definition expands the scope to include pure-play foundries, non-memory Integrated Device Manufacturers (IDMs), Outsourced Semiconductor Assembly and Test (OSAT) companies and photomask suppliers.
“Companies are moving from being part of a manufacturing line to acting as technology integration platforms,” said Neil Shah, Research VP at Counterpoint. “This shift ensures tighter vertical alignment, faster innovation and deeper value creation essential for system-level optimization in the AI era.”