Global semiconductor foundry revenue is projected to surge 17% in 2025 to exceed $165 billion, according to Counterpoint Research’s latest quarterly market update. The dramatic expansion reflects intense demand for artificial intelligence and high-performance computing chips that require cutting-edge manufacturing processes.
Advanced nodes below 7 nanometers will account for more than 56% of total foundry revenue, marking a fundamental shift toward sophisticated chipmaking. The 3-nanometer process stands out with revenue expected to rise by over 600% year-over-year to reach around $30 billion, while 5nm and 4nm nodes will contribute over $40 billion combined.
The growth stems from multiple technology transitions occurring simultaneously. AI-enabled smartphones are driving premium device upgrades, while AI-powered PCs equipped with neural processing units accelerate adoption. Data centers require specialized AI accelerators and graphics processing units manufactured on the most advanced nodes available.
Taiwan Semiconductor Manufacturing Company maintains its dominance, capturing 35% market share with revenue growth in the mid-30% range thanks to strong positioning in leading-edge processes. The company’s 2-nanometer technology, scheduled for mass production in late 2025, already attracts significant customer interest despite representing only 1% of revenue initially.
Mature processes face different dynamics. Nodes at 28nm and above will see their revenue share decline to 36% in 2025 from 54% in 2021, though 28nm specifically maintains growth momentum with a 5% compound annual growth rate.
Advanced packaging technologies including high-bandwidth memory integration and chiplet designs create additional revenue opportunities beyond traditional wafer production, positioning foundries for sustained expansion through 2028.
