AI demand drives Foundry 2.0 market revenue up 23% in 1Q26, says Counterpoint

Surging AI accelerator demand is reshaping the foundry landscape, shifting Foundry 2.0 from pure wafer fabrication toward integrated advanced packaging and heterogeneous integration. Technologically, tight CoWoS and InFO capacity is forcing co-evolution in EDA, substrate materials, and test equipment. On compliance, escalating U.S. export controls compel TSMC (Taiwan, China) and Samsung to localize high-end production in the U.S., inflating capex and operational risk. Strategically, SMIC leverages mature-node AIoT demand while Intel bets on IDM 2.0 to reclaim HPC ground. Over the next 12–24 months, advanced packaging will become a new geopolitical battleground—non-U.S. foundries lacking localized supply chains face margin erosion and client attrition.