TSMC Takes Record 73.6% Foundry Revenue Share as Industry Hits $48.8 Billion in Q1
The semiconductor foundry industry generated a record $48.8 billion of revenue in the first quarter of 2026, up 32% from a year earlier and 3% from the prior quarter, according to SemiAnalysis. The research firm said the seasonally weak quarter still marked a ninth consecutive quarter of year-over-year growth, and projected second-quarter revenue of $54.7 billion. TSMC widened its dominance, accounting for more than 95% of the quarter-over-quarter revenue increase, 92% of the industry's gross profit pool and a record 73.6% revenue share.
SemiAnalysis said TSMC, which posted 41% year-over-year growth in the quarter, is tracking for growth in the high-30% range for 2026 as 3-nanometer capacity remains the main supply bottleneck in the AI cycle and 2-nanometer production ramps. It also said the first phase of TSMC's Arizona operation generated more net profit in the quarter than in all of 2025, while the broader foundry market is splitting into three segments: AI leading edge, Chinese localization and mature-node production, with rivals including Samsung Foundry and Intel Foundry pursuing growth in specific niches.
From the sources (4 posts)
@semianalysis_The foundry industry hit a record $48.8B in 1Q26, +32% y/y and +3% q/q in seasonally soft Q1, marking the 9th consecutive quarter of y/y growth. 2Q26E tracks to $54.7B (+29% y/y, +12% q/q), with utilization climbing broadly across foundries
@semianalysis_After posting +41% y/y growth with ATH GM and OM in 1Q26, TSMC is tracking to high-30s growth in CY26. We raised our TSMC capex outlook again, well above the Street. N3 remains the main supply bottleneck of the AI cycle. TSMC is simultaneou
@semianalysis_TSMC Arizona surprised. After ramping up strongly in CY25 ($2B+ revenue), Phase 1 net profit in 1Q26 alone exceeded the entire CY25 net profit, with the May 13 board approving a record single-tranche Arizona authorization. Samsung Foundry i
@semianalysis_Intel Foundry's EMIB plus 18A-P/T is positioned as a multi-billion-dollar external franchise into 2028. New entrants still pushing into foundry. Rapidus (2nm/1.4nm), Tata (mature), Huawei (Tau Scaling), and Tesla-SpaceX Terafab targeting 1M