SMIC Narrows Foundry Market Share Gap With Samsung as Top 10 Foundries Hit Record $53.49 Billion Quarter

The global semiconductor foundry market delivered a record performance in the second quarter of 2026, with the world's top 10 foundries earning nearly $53.49 billion in combined revenue. TSMC remained the undisputed leader, capturing 72.5% of the market with revenue nearing $40.2 billion. But the most closely watched story was the race for second place, where China's SMIC continued to close the gap with Samsung Foundry. According to TrendForce, SMIC grew 20% quarter over quarter to top $3 billion in revenue and lifted its market share to 5.4%, while Samsung's share slipped to 5.9%.

TrendForce reported on September 9 that the combined revenue of the top 10 foundries rose 11.5% quarter over quarter to nearly $53.49 billion, a new record high. The research firm attributed the growth to continued supply constraints for advanced processes used in AI and high performance computing processors, rising demand for peripheral AI chips such as power management ICs and power discretes, and advance procurement across consumer supply chains for televisions, personal computers, and notebooks that tightened mature process capacity.

SMIC's rise is notable because it has achieved it while facing sustained US export restrictions on advanced chip making equipment to China. The company remains primarily limited to 7nm for advanced mass production and relies heavily on DUV lithography, according to Overclocking.com. Yet its revenue surged 20% quarter over quarter to more than $3 billion, the sharpest increase among the top 10 foundries tracked by TrendForce. Its market share rose to 5.4% from 5.1% in the previous quarter, consolidating its third place position globally.

Quartz reported on August 14 that SMIC's second quarter revenue reached $3.01 billion, its first time above $3 billion, up 20% from the prior quarter and 36.1% from the same period a year earlier. Gross profit rose to $760.6 million for a 25.3% gross margin, up from 20.1% in the first quarter. Profit attributable to shareholders came in at $479.2 million, nearly tripling from $132.5 million a year earlier. Both revenue and profit beat analyst estimates, according to Reuters, as cited by Quartz.

Key Facts

TrendForce's full second quarter top 10 table, measured in millions of US dollars, shows TSMC at 40,198, Samsung at 3,260, SMIC at 3,006, UMC at 2,175, GlobalFoundries at 1,786, HuaHong at 1,274, Tower at 460, VIS at 451, Nexchip at 447, and PSMC at 432. The total for the top 10 was 53,488, compared with 47,972 in the first quarter of 2026. TSMC grew 12.1% quarter over quarter, UMC grew 12.7%, and GlobalFoundries grew 9.3%. Samsung grew only 1.8%, the slowest among the top three.

Evertiq reported on September 10 that SMIC posted the strongest growth among the top three foundries in the second quarter of 2026. Revenue surged 20% quarter over quarter to more than $3 billion and market share edged up to 5.4% from 5.1%, closing in on Samsung Foundry's 5.9%. The narrowing gap is notable given sustained US export restrictions. Samsung's new advanced process orders, including HBM base dies, gradually ramped, and prices for 5/4nm and below rose, but its revenue still edged up only 1.8% to $3.26 billion.

SMIC's operational details for the quarter include shipping 2.9 million 8 inch equivalent units, a 14% gain quarter over quarter, while per wafer prices climbed 5.7%. China accounted for 90.2% of SMIC's second quarter revenue and the United States 8.2%. Monthly output capacity reached 1.1 million 8 inch equivalent wafers, up 1.7% quarter over quarter, at a 93.7% utilization rate. For the third quarter, SMIC guides revenue up 2% to 4% quarter over quarter with gross margin of 26% to 28%.

Counterpoint Research estimated on August 26 that the pure play foundry sector grew 29% year over year in the second quarter of 2026. Counterpoint puts TSMC at a 73% pure foundry share for a second consecutive quarter, Samsung Foundry at about 7%, and SMIC at about 5%. UMC and GlobalFoundries round out the top five at roughly 4% and 3%. Counterpoint notes that its percentage figures use a pure play revenue basis, which differs from TrendForce's broader top 10 basis, but both agree TSMC is far ahead and SMIC holds third.

Overclocking.com reported on September 11 that SMIC's end of 2025 figures included a monthly production capacity of 1,058,750 8 inch wafers, an annual utilization rate of 93.5%, more than 10.1 million wafers manufactured during the year and about 9.7 million shipped, and $773.6 million invested in research and development, equal to 8.3% of revenue.

Analysis

What this really means is that the US export control regime has not prevented SMIC from becoming a more significant force in the global foundry market, at least in mature and specialty nodes. SMIC's 20% quarter over quarter growth was well above the industry average of 11.5%, and its share gain came while Samsung, a much larger and more advanced competitor, grew only 1.8%. TrendForce attributed SMIC's gain to advance procurement in consumer supply chains, particularly PCs and notebooks, steady growth in AI peripheral ICs and server networking products, and widespread memory shortages that drove stronger foundry demand and pricing for NAND and NOR Flash.

The bigger picture here is that the foundry market is becoming more polarized. TSMC holds 72.5% of the top 10 market and is fully booked on its 5/4nm and 3nm capacity, with 2nm contributing revenue for the first time. Samsung remains second but is losing share to faster growing competitors. SMIC is now within half a percentage point of Samsung on TrendForce's measure. If SMIC maintains its current momentum while Samsung continues to grow slowly, a change in the number two position is plausible in the coming quarters. However, Counterpoint's pure play basis still shows Samsung at about 7% and SMIC at about 5%, a reminder that methodology matters.

SMIC's pricing power is also improving. Co CEO Zhao Haijun told investors that the company had secured higher prices through first quarter talks and that the increases would apply to wafers produced in the third quarter. He said there is still a big gap between industry leading wafer prices and SMIC's current prices, suggesting room for further increases. Quartz reported on August 14 that SMIC stock rose 5% after the earnings call, and that the company expects AI to sustain strong orders through the rest of 2026.

This is not to say SMIC is catching TSMC. The technology gap remains wide. SMIC is still primarily limited to 7nm for advanced mass production and relies heavily on DUV lithography, while TSMC is ramping 2nm and has fully booked leading edge capacity. Samsung, despite its slow growth, is working on improving SF2, its 2nm process, and saw demand for SF4 and SF5. The contest between SMIC and Samsung is therefore about scale in mature and specialty nodes as much as it is about leading edge technology.

Why It Matters

For the global chip supply chain, SMIC's rise matters because it reduces, at the margin, the industry's reliance on a handful of foundries for mature process chips. Those chips are essential for cars, industrial equipment, consumer electronics, and the peripheral power and networking components that support AI data centers. When mature process capacity is tight, as it was in the second quarter of 2026, prices rise and smaller customers struggle to secure supply. A stronger SMIC can add capacity and competition in that segment.

The development also lands in the middle of a broader technology competition between the United States and China. Chinese technology firms have raised roughly $217 billion over the past two years as China redirects capital markets toward its tech competition with the US. SMIC's results show that domestic demand and government support can sustain growth even under export controls. At the same time, the controls limit SMIC's access to the most advanced equipment, which caps how far it can push into leading edge manufacturing.

For Samsung and other foundries, the pressure is real. Samsung's foundry business grew only 1.8% in a quarter when the overall market grew 11.5%, and its market share slipped to 5.9%. If Samsung cannot accelerate its advanced process orders or defend its mature node business, it risks falling behind not only TSMC but also SMIC. For customers, a more competitive SMIC could mean more options and better pricing in mature nodes, but it could also intensify price competition in a segment where many foundries are investing.

Next Up

TrendForce expects third quarter foundry revenue to rise further on the seasonal smartphone ramp and growing production of next generation AI and HPC platforms. Counterpoint Research expects pure play foundry utilization to stay relatively high in the second half of 2026 as wafer average selling prices continue to rise. SMIC itself guides third quarter revenue up 2% to 4% quarter over quarter with gross margin of 26% to 28%, and Zhao Haijun said the company plans to reallocate capacity and bring additional lines online sooner to address supply chain tightness.

The key question for the rest of 2026 is whether SMIC can keep growing faster than Samsung. If it does, the gap in market share could close further, or even reverse. Much will depend on whether consumer electronics demand holds up, whether AI related orders continue to expand, and whether memory shortages persist. For now, the record $53.49 billion quarter has set a new high for the foundry industry, and SMIC is the standout mover within it.