The semiconductor foundry industry recorded a 3.7 percent sequential revenue increase in the first quarter of 2026. This growth stems from strong demand for artificial intelligence high performance computing and consumer electronics products.
TSMC and Samsung capture market share while manufacturers anticipate higher wafer costs later this year.
TSMC captured additional market share by supplying chips for AI CPUs, GPUs, and other specialized accelerators. Samsung also gained ground through supply chains serving televisions and personal computers while facing weaker smartphone sales.
Manufacturers reported lower underutilization rates across certain production nodes during the quarter. The industry expects utilization to rise further in the second half of the year alongside potential wafer price adjustments for customers.
SMIC expanded its operations despite ongoing export restrictions from the United States. Foundry operators anticipate stronger capacity usage and possible pricing shifts as demand continues to evolve.
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