TSMC captured 42% of the global "Foundry 2.0" market in the second quarter, up four percentage points from 38% in the first quarter, as overall revenue in the expanded contract-manufacturing segment hit a record $96.6 billion, up 25% year over year. Counterpoint Research, which published the figures on Sept. 30, reported that the market grew by more than $10 billion in a single quarter, from $86 billion in Q1.

Foundry 2.0 is a broader measure than the traditional pure-play foundry market. It folds in non-memory integrated device manufacturers (IDMs), outsourced semiconductor assembly and test (OSAT) providers, and photomask makers, treating the entire semiconductor manufacturing ecosystem as one market. On that definition, TSMC's dominance is widening rather than eroding as AI silicon demand accelerates.

The driver is a surge in orders for AI GPUs and ASICs, which pushes utilization higher in both advanced wafer processes and advanced packaging. TSMC's revenue grew 41% year over year in the first quarter, a result analysts attribute to demand spreading beyond leading-edge lithography into packaging capacity — an area where TSMC has invested heavily to serve AI accelerator customers.

Samsung stuck at 4%

Samsung Electronics held a 4% Foundry 2.0 share in the second quarter, flat with the first quarter, despite the overall market expanding sharply. The Korean company is restructuring its foundry business around AI and high-performance computing (HPC) to close the gap.

According to Samsung, its foundry client count has tripled since the unit launched as an independent business in 2017, and the company expects it to quadruple by 2029. Its HPC business share has grown from 5% in 2017 to 28% today, with a target of 66% by 2029.

On the process side, Samsung plans to mass-produce its third-generation 2-nanometer process in 2028, followed by a 1.4-nanometer node in 2029. The company is also expanding its production base in Taylor, Texas, to improve responsiveness to AI and HPC customers — a roadmap the market has yet to validate in share terms.

TSMC builds out a US corridor

TSMC, meanwhile, is converting its foundry lead into physical capacity. According to Taiwanese media reports, the company is considering a second wafer fab in the Dallas area of Texas, following its Arizona facility, and aims to build a semiconductor production ecosystem linking the two states.

The strategy serves two purposes: it answers major clients' demands for expanded US-based production, and it aligns with Washington's push for semiconductor supply-chain localization. For customers designing AI accelerators, a domestic US corridor spanning wafer fabrication could shorten supply lines that currently route through Taiwan.

Why concentration is increasing

Counterpoint's data suggests the AI boom is reinforcing, not disrupting, the existing hierarchy. As the AI semiconductor market expands, customers increasingly need vendors that can supply leading-edge microfabrication at scale and advanced packaging under one roof. That combination favors TSMC, which already leads on both axes, over rivals still building out either capacity or packaging capability.

Capacity, not just share, is the watch item. Counterpoint warned that surging demand for AI GPUs and ASICs "could exacerbate the shortage of production capacity for advanced processes and advanced packaging." The firm also flagged an opening for laggards: "There is a possibility that new order opportunities will expand for Samsung Electronics Foundry and Intel Foundry as well." If the capacity crunch Counterpoint forecasts materializes, Samsung's 2nm and 1.4nm roadmap and its Taylor expansion will face their first real test against TSMC's Arizona–Texas buildout.