SMIC continues to gain ground in the global semiconductor market. The Chinese foundry posted spectacular growth in the second quarter of 2026, with revenue exceeding $3 billion. Over the three-month period, its foundry revenue rose by 20 percent—the sharpest increase among the top ten global manufacturers tracked by TrendForce.
SMIC Is a Force to Be Reckoned With
Before delving into the numbers, the first observation regarding TSMC is undeniable. The Taiwanese group clearly holds a monopoly in the market. In this top 10 ranking, the gap between TSMC and the second-place company is not just a step, but an abysmal chasm. In third place, SMIC’s market share now stands at 5.4%, up from 5.1% in the previous quarter. This growth allows SMIC, above all, to consolidate its third-place position globally and close in significantly on Samsung Foundry. The Korean group remains in second place, with a 5.9% market share and $3.26 billion in quarterly revenue, but grew by only 1.8% over the same period.
TSMC: A Near-Monopoly…
As mentioned above, TSMC operates in a league of its own, as the Taiwanese giant holds a 72.5% market share, with nearly $40.2 billion in quarterly revenue. The global foundry market itself grew by 11.5%, reaching nearly $53.49 billion in the second quarter. Against this backdrop, SMIC’s growth is therefore well above the industry average.
Of course, the current situation and the Chinese authorities’ desire to prioritize local industries partly explain SMIC’s strong growth. But the company’s growth does not rely solely on the Chinese smartphone market. TrendForce specifically cites advance purchases by global manufacturers of desktop and laptop PCs. Demand is also rising for peripheral integrated circuits used in artificial intelligence infrastructure, as well as for network components used in servers. Finally, shortages in memory chips have boosted demand for contract manufacturing of certain NAND and NOR chips.
SMIC Is Moving Fast and Posing a Threat to Samsung
At the end of 2025, SMIC had a monthly production capacity of 1.05875 million 8-inch wafers, with an annual utilization rate of 93.5%. The company manufactured more than 10.1 million wafers during the year and shipped approximately 9.7 million. SMIC also invested $773.6 million in research and development, representing 8.3% of its revenue. These investments demonstrate that SMIC is no longer merely a local alternative but is gradually building a solid industrial infrastructure.
Although the Chinese group’s production remains primarily limited to 7 nm for its advanced mass production—with processes that rely heavily on DUV lithography—SMIC is making rapid progress.