Taiwan's foundry industry is expected to see slower growth in the second half of 2025, as the electronics supply chain takes a more cautious approach to order pull-ins, despite some support from shipments of new smartphone application processors (APs), according to DIGITIMES.
Third-quarter revenue growth is projected to slow to 7.1% quarter-on-quarter, while elevated customer inventories and semiconductor tariff policies are likely to limit wafer shipments and revenue in the fourth quarter.
Meanwhile, TSMC's planned withdrawal from the gallium nitride (GaN) foundry market is set to reshape the competitive landscape of Taiwan's foundry sector.
Chart 1: Key factors affecting Taiwan wafer foundry industry in 2H25
Chart 2: Global major IT products on-year shipment growth, 2022-2025
Chart 3: Taiwan key wafer foundry revenues, 2Q24-4Q25 (US$b)
Chart 4: Taiwan key wafer foundry revenues, 1H23-2H25 (US$b)
Chart 5: Taiwan wafer ASP of major foundries, 2Q24-4Q25 (US$/8-inch wafer)
Chart 7: Taiwan foundry revenue share by manufacturing node, 2Q24-4Q25
Chart 8: GaN technology deployment of Taiwanese key wafer foundries
Chart 10: Taiwanese foundries' revenue outlook and key topics
