Global Wafer Foundry Q2 Output Hits Record High, TSMC Dominates with 72.5% Market Share, Samsung Falls Below 6%

Rising demand for AI chips has driven the global wafer foundry market to another record high in the second quarter of 2026. According to the latest report from TrendForce, the combined revenue of the world's top ten wafer foundries reached nearly $53.49 billion in Q2 2026, a 11.5% increase from the previous quarter and surpassing Q1's $47.95 billion.

TrendForce noted that the growth momentum in Q2 was fueled not only by sustained strong demand for advanced-process AI high-performance computing (HPC) chips, but also by rising demand for AI-related power management ICs (PMICs) and power discrete components. Additionally, early inventory buildup in the supply chains for consumer electronics such as TVs and laptops further boosted foundry output.

TSMC (2330-TW) maintained its position as the global leader in wafer foundry during Q2, with revenue approaching $40.2 billion, a 12.1% quarter-on-quarter increase. Its market share rose slightly from 72.3% in Q1 to 72.5% in Q2. TrendForce highlighted that TSMC's 5/4nm and 3nm advanced process capacities remained fully utilized, and its 2nm process contributed to revenue for the first time, further solidifying its technological lead.

Samsung Electronics (005930-KS), ranked second, reported Q2 foundry revenue of $3.26 billion, a modest 1.8% increase quarter-on-quarter, significantly lagging behind the overall market growth. As a result, its market share declined from 6.5% in Q1 to 5.9% in Q2, widening the gap with TSMC to 66.6 percentage points.

Samsung's growth was primarily driven by increasing volume from new advanced-process orders such as HBM base wafers and price hikes for sub-5/4nm advanced process foundry services. However, due to faster growth among competitors, its market share continued to erode.

Amid ongoing market share pressure, Samsung continues to expand its advanced process capacity. Its wafer foundry plant in Taylor, Texas, USA, is scheduled to officially commence operations within 2026, aiming to capture greater market share.

The plant's 2nm production capacity has already been fully booked, securing orders from Tesla for its AI5 chip, Broadcom for its next-generation communication chip, and Arm for its edge AI chip. Trial operations are expected to begin in October 2026, with mass production starting in 2027. Initial wafer input will be 50,000 wafers per month.

During its Q2 earnings call, Samsung confirmed plans to begin construction of Taylor Fab 2 by the end of 2026, targeting large-scale mass production by 2030. As TSMC extends its lead, Samsung is leveraging its U.S.-based advanced process capacity to secure more foundry orders.

Among other major foundries, SMIC (00981-HK) ranked third and HHGrace (01347-HK) sixth, with market shares of 5.4% and 2.3%, respectively.

SMIC's Q2 revenue surged 20% quarter-on-quarter, exceeding $3 billion, driven by early consumer supply chain inventory buildup, increased orders for AI peripheral ICs and server networking chips, and rising demand and prices for NAND and NOR Flash foundry services.

UMC (2303-TW) ranked fourth with a 3.9% market share, reporting Q2 revenue of nearly $2.18 billion, a 12.7% increase. Its 8-inch wafer capacity utilization showed a clear rebound. GlobalFoundries ranked fifth with a 3.2% market share, with revenue rising 9.3% to approximately $1.79 billion.