TSMC leads with high gross margins, while second- and third-tier foundries operate at full capacity but struggle to profit

The foundry industry faces operational pressures in 2025 due to external factors such as tariffs, exchange rates, and geopolitical tensions. Only TSMC continues to achieve record-breaking annual performance by systematically overcoming these challenges. Meanwhile, second and third-tier foundries experience declining results. SMIC and Hua Hong have expanded order volumes, yet their profits have not seen significant corresponding growth, and PSMC remains mired in losses.

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