Foundry revenue this year increased 17% to $165 billion, with 2nm being the longest-lived process in five years.
TechNews Technology News
July 28, 2025
By Atkinson
July 28, 2025
By Atkinson
According to the latest "Quarterly Foundry Market Report" from market research and survey firm Counterpoint, global pure-play foundry revenue is projected to increase by 17% in 2025 compared to 2024, exceeding $165 billion, driven by strong demand for AI and high-performance computing (HPC) chips. This represents a compound annual growth rate (CAGR) of 12% from 2021 to 2025.
The report indicates that advanced processes (sub-7nm) will be the primary growth driver, accounting for over 56% of revenue in 2025. The 3nm node is expected to perform exceptionally well, increasing by over 600% compared to 2024, reaching approximately $30 billion in revenue. 5/4nm processes are also expected to maintain high demand, contributing over $40 billion. This overall growth momentum is driven by the wave of AI smartphone upgrades, the accelerated adoption of AI PCs equipped with NPUs, and growing demand for AI ASICs, GPUs, and HPC applications.
Counterpoint Research Senior Analyst William Li stated that although the 2nm process will only account for 1% of total revenue in 2025, as TSMC expands production capacity in Taiwan, its revenue share is expected to exceed 10% by 2027. Counterpoint Research believes that 2nm will become one of the most strategically valuable and longest-lived node processes over the next five years, benefiting from strong demand growth for AI and computing applications extending from the cloud to edge devices.
For other process nodes, the 20-12nm range is expected to remain stable, contributing an estimated 7% of revenue. This is due to the migration of some mature process applications to more advanced nodes. Furthermore, compared to 54% in 2021, the share of mature processes (28nm and above) is expected to drop to 36% in 2025, indicating that older processes are being gradually replaced. However, the 28nm process remains a bright spot and is expected to maintain growth momentum at a 5% CAGR.
Overall, the global pure-play foundry industry is expected to continue to demonstrate steady growth in 2025, with advanced processes remaining a key driver of market and technological evolution. TSMC maintains a leading position in advanced processes, while Samsung and Intel are actively expanding their presence. UMC, GlobalFoundries, and SMIC maintain stable performance in mature processes. In addition to innovative breakthroughs in front-end processes such as High-NA EUV, back-end packaging is also demonstrating diverse advancements, such as HBM integration and chiplet die design, creating further opportunities for revenue growth.
Related Link: https://technews.tw/2025/07/28/foundry-revenue-to-grow-17-annually-to-165-billion-in-2025/
Image Source: TSMC
Image Source: TSMC
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