March 19, 2025 /SemiMedia/ — Global semiconductor foundry revenue rose 26% year-over-year and 9% quarter-over-quarter in Q4 2024, driven by strong AI demand and a recovering Chinese market, according to Counterpoint Research.

Advanced nodes remained in high demand, particularly for TSMC's N3 and N5 processes, which maintained strong utilization rates. Meanwhile, mature node foundries outside of China continued to struggle, with utilization rates hovering between 65% and 70%. The 12-inch wafer segment saw a stronger recovery than 8-inch, as automotive and industrial demand remained weak. However, non-AI semiconductor demand is gradually rebounding, especially in consumer electronics and PCs, supported by preemptive inventory buildup due to U.S. tariffs and Chinese government subsidies.

TSMC retained its dominant position, expanding its market share to a record 67% in Q4 2024, up from 64% in the previous quarter. The company benefited from high utilization at advanced nodes, particularly N3 and N5, driven by demand for AI accelerators and high-end smartphones.

Samsung Foundry ranked second but saw its revenue decline quarter-over-quarter, with its market share slipping from 12% to 11%. Weak Android smartphone demand and rising R&D costs associated with advanced node development weighed on the company’s performance.

SMIC secured the third spot, with revenue growth in line with expectations. The company benefited from recovering consumer electronics demand and China's localization efforts. While its 12-inch wafer shipments increased, 8-inch wafer demand remained soft. Overall utilization fell from 90.4% to 85.5%, reflecting ongoing capacity expansion and weaker 8-inch node utilization.

UMC ranked fourth, with stable wafer shipments supported by sporadic consumer electronics rush orders. However, pricing pressure and the impact of the Taiwan earthquake weighed on margins, leading to a weaker Q1 2025 outlook. While demand for Wi-Fi, display driver ICs, and other consumer applications showed early signs of recovery, the company remains cautious about broader market momentum.

GlobalFoundries placed fifth, reporting stable Q4 2024 results. Strong wafer shipments offset seasonal weakness in the smartphone sector. Automotive chip demand remained a key driver, while revenue from communication infrastructure and data centers surged, fueled by increasing demand for AI inference chips, optical transceivers, and satellite communications. Industrial and IoT markets also showed early signs of recovery.