Counterpoint: Global Foundry 2.0 Revenue Hits $96.6 Billion in Q2 2026
Counterpoint Research reports that global Foundry 2.0 market revenue grew 25% year-over-year to reach a record $96.6 billion in Q2 2026. TSMC led the sector with $40.2 billion in revenue, capturing a 42% share of the overall market. The sustained growth reflects the massive impact of the ongoing AI hardware boom, which is driving strong demand for advanced semiconductor manufacturing and packaging integration. It highlights TSMC's overwhelming market dominance while signaling broader expansion across non-memory IDMs and OSAT vendors. Pure-play foundries generated $54.9 billion (up 29% YoY), while OSAT revenue rose 22% YoY to $12.6 billion. Additionally, TSMC's CoWoS advanced packaging capacity deficit is projected to remain around 20% this year before narrowing to 10% by 2027.
## BACKGROUND
"Foundry 2.0" is an expanded industry definition introduced by TSMC Chair C.C. Wei in 2024 that encompasses not only traditional wafer fabrication, but also non-memory IDMs, photomasks, testing, and advanced packaging services like CoWoS (Chip-on-Wafer-on-Substrate). OSAT (Outsourced Semiconductor Assembly and Test) providers play a critical role in assembling and packaging integrated circuits, which are increasingly crucial for combining high-performance compute chips with high-bandwidth memory (HBM).