Top 10 foundries face tariffs and subsidies, 1Q revenue declines

The top 10 foundries maintained strong market positions despite mixed revenue performance influenced by tariffs, subsidies, and seasonal trends.

TSMC held a dominant 67.6% market share with Q1 revenues of USD 25.5 billion, down 5%. Declines in smartphone wafer shipments were offset by solid AI HPC demand and urgent TV-related orders linked to tariff avoidance, according to TrendForce.

Samsung Foundry posted USD 2.89 billion in revenues, a decline of 11.3%, with its market share slipping to 7.7%. Its limited benefit from China subsidies and exposure to US advanced node restrictions contributed to the downturn.

SMIC saw a 1.8% revenue increase to USD 2.25 billion, aided by early stocking prompted by US tariffs and Chinese subsidies, mitigating average selling price declines and securing the company a third place.

UMC retained its fourth position with revenue of USD 1.76 billion, down 5.8%. Early customer stocking sustained wafer shipments and capacity utilisation, though ASPs declined due to an annual pricing adjustment.

GlobalFoundries, whose customers primarily placed orders for markets outside of China, did not benefit from the subsidy program. Combined with seasonal weakness, wafer shipments and ASPs declined, pulling revenue down 13.9% to USD 1.58 billion and slightly shrinking its market share.

Looking ahead, TrendForce expects the tariff-driven early procurement effect to fade in Q2 2025. However, ongoing demand from China’s subsidy program, pre-launch inventory buildup for new smartphones, and stable AI HPC demand should support capacity utilisation and a revenue rebound for the top foundries.