Taiwan Semi (TSM) Has Gained a Much Bigger Piece of the Foundry Market in Q2

Chipmaker Taiwan Semiconductor Manufacturing Company (TSM) gained a much bigger piece of the semiconductor foundry market in the second quarter of 2025 by rising to 38% market share from 31% a year earlier, according to Counterpoint Research. This happened during a time when the whole industry saw strong growth, as foundry revenue jumped by 19% year-over-year. That growth came from rising demand for artificial intelligence chips that use advanced chip-making and packaging techniques, along with a boost in orders from China due to government subsidies.

Counterpoint expects the industry to keep growing in the third quarter, thanks to these same trends. As chipmakers increasingly rely on advanced packaging to improve performance, TSMC is in a strong position. William Li, a senior analyst at Counterpoint, said that TSMC is likely to stay ahead because of its cutting-edge technology and strong relationships with major customers. Indeed, the company isn’t just a leader in making the most advanced chips, but it’s also seen as a frontrunner in the next generation of chip packaging.

While TSMC pulled ahead, most of its competitors stayed in place or lost ground. For example, Texas Instruments (TXN) and Intel (INTC) both held steady at 6% market share. Infineon (IFNNY) dropped slightly to 5% from 6%, and Samsung (SSNLF) slipped to 4% from 5%. Looking forward, analyst Jake Lai said that the upcoming consumer electronics season, fast-growing AI demand, and China’s ongoing subsidy program should keep pushing foundry demand higher in the third quarter.

Is TSM Stock a Good Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on TSM stock based on six Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSM price target of $273.43 per share implies 4.7% upside potential.

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