TSMC Controls 72.5% of Foundry Market as Intel Mounts Unprofitable Comeback

Taiwan Semiconductor Manufacturing Co. (TSM) holds 72.5% of the global foundry market, reporting $40.2 billion in Q2 2026 revenue and a 60.3% operating margin, while Intel (INTC) struggles to establish its external foundry business. Intel's Foundry segment posted $5.8 billion in Q2 2026 revenue, up 31% year-over-year, but only $293 million came from external customers. The segment lost $2.1 billion for the quarter. Intel's 18A node output came in 25% above target in Q2 2026, with the 18A-P performance upgrade entering risk production. The company's 14A node is planned for risk production in 2027 and high-volume ramp in 2028. Fortinet became Intel's first named external foundry customer in July 2026. TSMC faces geopolitical risks from its Taiwan concentration and plans $60-$64 billion in 2026 capital spending, including a $100 billion Arizona investment. The U.S. government acquired a 9.9% Intel stake in August 2025 to keep advanced foundry production on American soil.