AI and Servers Underpin Foundry Growth Momentum
At its AI Next – 2027 technology industry forecast seminar, TrendForce senior analyst Ying-Ting Chung delivered a presentation titled Spanning Advanced and Mature Nodes: AI Demand Reshapes the 2027 Global Foundry Landscape. Although consumer electronics demand remains relatively sluggish amid rising memory and supply-chain costs, AI and general-purpose servers remain the core growth drivers for the foundry industry in 2027, with demand extending from advanced nodes to peripheral ICs on mature nodes.
Growth on a High Base Sends Output Value to US$294.394 Billion
TrendForce notes that, following 33.5% growth in 2026 off a high base, global foundry output value is expected to rise a further 30.8% year on year in 2027 to US$294.394 billion. TSMC's market share is projected to rise from 73% to 76%, while revenue at other foundries will still grow 13.8% year on year in 2027. Taiwanese foundries including TSMC, UMC, VIS and PSMC will see their combined global market share grow from 78% to 81%, exceeding 80% for the first time.
Mature-Node Recovery Drives Broad-Based Price Increases
On capacity, besides tight advanced-node and advanced-packaging capacity, higher raw-material costs, shrinking 8-inch capacity, and recovering utilization at 12-inch mature nodes have prompted foundries to signal price increases to customers. Foundries show stronger pricing power in 8-inch wafers, and foundry prices in 2027 are expected to rise across the board.
Expansion Shifts Overseas Toward Foundry 2.0
To meet AI demand, fabs continue to expand capacity, including TSMC and Samsung. Second-tier foundries are actively investing in silicon photonics and packaging-related technologies such as silicon interposers and deep-trench capacitor technology. To reduce geopolitical risk, new capacity is increasingly being planned overseas. Foundry is evolving from Foundry toward Foundry 2.0: besides TSMC and Intel, second-tier foundries and traditional OSAT providers are also moving into advanced-packaging technologies and services to strengthen competitiveness and meet customer upgrade demand.