Global Foundry 2.0 market revenue reached a record $96.6 billion in the second quarter of this year, up 25% year over year, according to Counterpoint Research data published Sept. 30. That figure rose more than $10 billion in a single quarter, from $86 billion in the first quarter.

Foundry 2.0 is an expanded definition of the contract manufacturing market. It treats the entire semiconductor manufacturing ecosystem as one market, covering pure-play foundries, non-memory integrated device manufacturers (IDM), outsourced semiconductor assembly and test (OSAT) companies, and photomask producers.

Demand for AI graphics processing units (GPUs) and application-specific integrated circuits (ASICs) is driving the growth. Utilization rates for both advanced processes and advanced packaging are climbing as a result.

TSMC consolidates

TSMC captured most of that expansion. Its share of the Foundry 2.0 market rose 4 percentage points quarter over quarter, from 38% in Q1 to 42% in Q2. Samsung Electronics held flat at 4% across the same period.

TSMC's momentum was already visible earlier in the year. In the first quarter, its revenue grew 41% compared with the same period last year. Analysts attribute that growth to demand spreading beyond advanced processes into advanced packaging, fueled by AI GPUs and ASICs.

The competitive structure is consolidating around TSMC rather than fragmenting. As the AI semiconductor market scales, suppliers must deliver microfabrication, large-scale production capacity, and advanced packaging at the same time — a combination TSMC currently matches better than its rivals.

The company is converting that lead into capacity. According to Taiwanese media reports, TSMC is considering a second wafer plant in the Dallas area of Texas, following its facility in Arizona. The plan envisions a production ecosystem linking Arizona and Texas.

The strategy serves two purposes. It expands local production in the United States to meet the demands of major clients, and it addresses supply chain diversification plus the U.S. government's push for semiconductor production on American soil.

Samsung restructures around AI and HPC

Samsung Electronics, stuck at a 4% share for two consecutive quarters, is restructuring its foundry business around AI and high-performance computing (HPC).

The client base is growing. Samsung says its foundry customer count has tripled since the unit launched as an independent business in 2017, and it expects the figure to quadruple by 2029.

The product mix is shifting too. HPC accounted for 5% of Samsung's foundry business in 2017 and stands at 28% today. The company plans to raise that to 66% by 2029.

Process roadmaps back the pivot. Samsung intends to mass-produce its third-generation 2-nanometer process in 2028, followed by 1.4-nanometer mass production in 2029. It is also expanding its production base in Taylor, Texas, to improve responsiveness to AI and HPC clients.

Capacity crunch ahead

Counterpoint Research sees strain building in the supply chain. "The expanding demand for AI GPUs and ASICs could exacerbate the shortage of production capacity for advanced processes and advanced packaging," the firm analyzed. It also forecasted: "There is a possibility that new order opportunities will expand for Samsung Electronics Foundry and Intel Foundry as well."

For now, the numbers point one way. A market growing $10 billion in a quarter is absorbing into one supplier's books, and TSMC's 42% share marks a four-point gain while its closest large rival stayed static.