Double drive of AI demand + Chinese subsidies, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's (TSM.US) Q2 market share has surged to 38%, taking the lead.

According to Counterpoint Research data, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) saw its market share in the semiconductor foundry market soar to 38% in the second quarter of 2025, an increase of 7 percentage points compared to the same period last year when it was 31%. This growth was driven by a 19% year-on-year increase in overall wafer foundry revenue, mainly due to strong demand for advanced processes and packaging technologies in the artificial intelligence industry, as well as the significant boost from China's subsidy policy. Counterpoint predicts that wafer foundry revenue will continue to grow in the third quarter of 2025, achieving a mid-single-digit percentage increase. Counterpoint Senior Analyst William Li points out that as the crucial role of advanced packaging technology in enhancing chip performance becomes increasingly prominent, chip designers will increasingly rely on advanced packaging to improve solution performance. Given Taiwan Semiconductor Manufacturing Co., Ltd.s current technological advantage and solid customer relationships, it is expected that the company will not only continue to lead in the field of advanced process nodes, but will also maintain its dominant position in the field of advanced packaging in the future. In comparison with other players in the industry, in the second quarter, most other wafer foundry companies (including IDM outsourcing shares) maintained or slightly decreased market share: Texas Instruments Incorporated (TXN.US) and Intel Corporation (INTC.US) both maintained a 6% market share; Infineon Technologies saw a slight drop from 6% to 5%, while Samsung slipped from 5% to 4%. Counterpoint Senior Analyst Jake Lai analyzes that the traditional peak season effect in consumer electronics, accelerated orders for AI applications, and existing subsidy policies in China will be the main drivers in the third quarter.