Global Foundry 2.0 market to top $360b in 2026 on strong AI chip demand

AI chip demand and advanced packaging drive growth with giants TSMC and Samsung expanding production.

The global Foundry 2.0 market that covers wafer fabrication, non‑memory integrated device manufacturing (IDM), outsourced semiconductor assembly and test (OSAT), and photomask fabrication, is projected to exceed $360b in 2026, up 17% from 2025, driven by strong demand for AI chips, according to International Data Corporation (IDC).

“Tight capacity at advanced process nodes and in advanced packaging is prompting manufacturers to prioritise AI-related production,” said Galen Zeng, Senior Research Manager at IDC Asia/Pacific.

The Taiwan Semiconductor Manufacturing Company (TSMC) aims to expand 3 nm wafer and advanced packaging production, targeting a 44% market share in 2026, whilst Samsung Foundry is scaling advanced nodes. Tighter supply of 8‑inch wafers, used for mature chips, is helping keep prices stable.

Advanced packaging demand is forecast to drive 15% growth in OSAT in 2026, and IDC projects an 11% annual growth through 2030. Integrating front‑ and back‑end manufacturing, including advanced packaging and heterogeneous integration, will be crucial to meeting rising demand for AI and specialised compute chip, according to the IDC.