Racing past $165 billion in 2025, the global foundry market sees advanced chip nodes dominate, with 3nm and 5nm powering AI, HPC, and next-gen devices.
The global pure‑play semiconductor foundry market is set to reach a record $165 billion in 2025, up from $105 billion in 2021. This represents a 12% CAGR over the four-year period, according to Counterpoint Research. This marks a 17% year-on-year rise from 2024.
The growth is being driven by advanced nodes (7nm and below), which will account for more than 56% of total revenues in 2025. Demand is fuelled by premium AI smartphones, high-performance computing (HPC), server chipsets, and AI-driven PC solutions.
In particular, the 3nm node is forecast to generate nearly $30 billion in 2025; a more than 600% YoY increase, while the 5/4nm node is expected to deliver over $40 billion.
Meanwhile, mature nodes are seeing a gradual decline in share. In 2021, nodes of 28nm and above accounted for 54% of revenue; by 2025, their share will fall to 36%.
Looking ahead, the report stated that revenues, however, will remain broadly stable, with the 28nm node being the only mature node to record growth. This will be approximately 5% CAGR, due to steady demand in automotive, display drivers, and IoT.
Additionally, the introduction of the 2nm node in 2025 will contribute about 1% of revenue initially but is expected to surpass 10% by 2027, driven by ramp-up at TSMC and strong adoption across AI and computing applications.
“We believe 2nm will become one of the most long-lived and impactful nodes over the next five years or so, surpassing the previous nodes in terms of business contribution, thanks to growing demand from AI and computing applications, from cloud to edge,” said William Li, Senior Analyst at Counterpoint.
TSMC is expected to capture the largest share of advanced‑node revenues, with Samsung and Intel also strong contenders. For mature nodes, UMC, GlobalFoundries, and SMIC will continue to benefit from steady demand.
On the other hand, innovation in High‑NA EUV lithography and chiplet‑based packaging, along with HBM memory integration, is creating new backend revenue opportunities.
