Benefiting from inventory stocking for smartphones and PCs alongside a recovery in automotive demand, the rebound in mature processes drove growth for UMC and HuaHong. TSMC's advanced processes and AI boosted Q3 production value, while Chinese foundry Nexchip climbed to eighth place, with a stable outlook for Q4.

Key Highlights

• Market Leadership: Benefiting from demand for AI and High-Performance Computing (HPC), TSMC continues to lead in capacity utilization and revenue, acting as the key driver propelling the growth of the top 10 foundries' production value.
• Demand Drivers: New smartphone and PC releases, along with a gradual recovery in partial automotive orders, boosted capacity utilization and revenue for UMC and HuaHong Group.
• Localization Benefits: The "China for China" policy bolstered Chinese foundries, enabling Nexchip to surpass Tower Semiconductor in revenue rankings.
• Western Foundry Dynamics: GlobalFoundries reported flat revenue due to inventory adjustments in specific segments but expects growth driven by industrial and automotive recovery.
• Future Outlook: Looking ahead to Q4, major foundries are expected to maintain high utilization rates, with revenue trends likely to remain stable or continue growing.

Table of Contents

1. Introduction
2. New iPhones and AI HPC Served as Main Drivers of Order Pulls for 3Q25; Mild Recovery Seen from Demand for Non-Advanced Nodes
3. Tailwinds from the “China for China” Trend Have Pushed Chinese Foundries Ahead of Peers; Nexchip Surpassed Tower to Take Eighth Place in 3Q25 Revenue Rankings
   • 3Q25 Revenue Ranking among Top 10 Global Foundries

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