Taiwan and China's wafer foundry industry off-season was not slow, and the price hike effect will drive up cross-strait industry revenues in the second quarter of 2026 and full-year 2026.
Abstract
DIGITIMES observes that in the first quarter of 2026, wafer foundry revenues in Taiwan and China rose 6% and 1.7% sequentially to US$38.7 billion and US$4.1 billion, respectively, reflecting unusually strong off-season demand. AI applications in Taiwan and government policies in China were the key revenue drivers for foundries in each market.
Looking ahead to the second quarter of 2026, as customers shift consumer electronics chip orders to other applications and wafer foundry price hikes take effect, industry revenues on both sides of the Taiwan Strait are expected to rise by more than 10% quarter on quarter. Combined full-year 2026 revenue growth for both markets is also projected to exceed 25% year on year.
In the first quarter of 2026, the wafer foundry industries in Taiwan and China both delivered stronger-than-usual seasonal performance. In Taiwan, growth was mainly driven by AI applications, which kept TSMC's advanced nodes highly utilized and caused overall foundry revenue to rise sequentially.
Table of contents
Chart 1: Key factors affecting Taiwan and China wafer foundry industry, 1Q26-2Q26
Chart 2: Taiwan and China wafer foundry revenues, 1Q25-1Q26 (US$b)
Chart 3: Taiwan foundry revenue share by manufacturing node, 1Q25-1Q26
Chart 4: Taiwan and China foundries utilization rate, 1Q25-1Q26
Chart 5: Status of Taiwan and China wafer foundries service price increase, 2026
Chart 6: Taiwan and China wafer foundry revenues, 1Q25-2Q26 (US$b)
Chart 7: Taiwan and China major wafer foundries advanced node roadmap, 2025-2029
Chart 8: Taiwan and China major wafer foundries advanced node and capacity plans
Chart 9: Y/Y shipment growth of major IT products, 2025-2026
Chart 10: Taiwan and China major wafer foundries capex, 2024-2026 (US$b)
Chart 11: Taiwan and China wafer foundry revenues, 2021-2026 (US$b)
Chart 12: Taiwanese foundries' revenue outlook and key topics, 2026