Foundry capacity underutilised but revenues and market share growing

Semiconductor wafer demand (12” equivalent) reached 8.7 million wpm last year, says Yole Group, with the foundry industry earning 47% of all wafer manufacturing revenue, worth $181bn, last year

Foundry manufacturing capacity continues to grow and is projected to reach 15.25 million wpm by 2031. The CAGR should be 4% from 2025 to 2031

However, over-investment in manufacturing capacity saw foundry utilisation drop to 73% in 2025, with forecasts that utilisation may remain between 70% and 75% over the coming years.

TSMC increased its market share to approximately 32% of global semiconductor manufacturing revenue in 2025 and 68% of the foundry market.

China is rapidly expanding capacity and could have 30% of global foundry capacity by 2031.

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David Manners

David Manners has more than forty-years experience writing about the electronics industry, its major trends and leading players. As well as writing business, components and research news, he is the author of the site's most popular blog, Mannerisms. This features series of posts such as Fables, Markets, Shenanigans, and Memory Lanes, across a wide range of topics.