- The global foundry 2.0 market’s revenue grew 23% YoY to $86 billion in Q1 2026, as AI GPUs and AI ASICs continued to drive demand across both leading-edge process nodes and advanced packaging.
- TSMC remained the major beneficiary of the AI cycle, delivering 41% YoY revenue growth in Q1 2026. We expect AI-driven demand momentum to remain strong, supporting 36% YoY revenue growth for the full year 2026.
- Chinese foundries continued to outperform on localization demand and structural wafer price increases, with SMIC and Nexchip reporting 12% YoY and 19% YoY revenue growth, respectively.
- UMC’s revenue rose 10% YoY while Vanguard’s climbed 14% YoY benefiting from improving consumer electronics demand and PMIC strength.
- Growing TPU and ASIC demand could further tighten leading-edge capacity, creating opportunities for Intel Foundry and Samsung Foundry, with Apple M-series chip on Intel Foundry as a potential catalyst.
- ASE and Amkor reported 18% YoY and 25% YoY revenue growth, respectively, highlighting how AI demand is increasingly expanding beyond foundry and into packaging and testing capacity.
Seoul, Beijing, Berlin, Buenos Aires, Fort Collins, Hong Kong, London, New Delhi, Taipei, Tokyo – June 25, 2026
The global foundry 2.0 market revenue climbed 23% YoY in Q1 2026 to reach $86 billion, according to Counterpoint Research’s latest Foundry Market Supply Tracker. The expansion was largely driven by strong demand for AI GPUs and AI ASICs, which boosted both advanced node wafer demand and advanced packaging utilization. TSMC remained the primary beneficiary of this trend, while leading OSAT vendors also captured incremental opportunities as packaging capacity became an increasingly critical constraint across the AI supply chain.
The AI investment cycle is reshaping the semiconductor value chain, accelerating the industry's transition toward the Foundry 2.0 era, which is characterized by the integration of wafer manufacturing, advanced packaging, and testing. As AI systems become more complex and packaging-intensive, competitive advantages are no longer determined solely by process technology, but by the ability to deliver advanced packaging and foundry capacity at scale.
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