Semiconductor foundries are manufacturing facilities that fabricate integrated circuits designed by other companies — with TSMC, Samsung, and Intel Foundry Services dominating advanced node production, these fabs represent the critical manufacturing infrastructure that enables the global semiconductor industry.

What Is a Foundry?

• Definition: Factory that manufactures chips designed by customers.
• Business Model: Pure-play (TSMC, GlobalFoundries) vs. IDM (Intel, Samsung).
• Capability: Measured by process node (nm) and production volume.
• Investment: $10-20B+ for modern fab construction.

Why Foundries Matter

• Concentration: Few companies can manufacture advanced chips.
• Bottleneck: Foundry capacity limits global chip supply.
• Geopolitics: Strategic importance of manufacturing capability.
• AI Hardware: All AI chips depend on foundry manufacturing.
• Innovation Enabler: Foundry advances enable new AI chips.

Major Foundries

Leading Players:

Foundry              | Strengths                    | Leading Node
---------------------|------------------------------|-------------
TSMC                 | Technology leader, volume    | 3nm, 2nm coming
Samsung Foundry      | Advanced nodes, GAA          | 3nm GAA
Intel Foundry        | Western capacity, packaging  | Intel 4 (≈5nm)
GlobalFoundries      | Mature nodes, RF             | 12nm (stopped nm race)
UMC                  | Mature nodes, automotive     | 14nm
SMIC                 | China domestic, restricted   | 7nm (limited)

Market Share (Advanced nodes):

Company         | Advanced Node Share
----------------|--------------------
TSMC            | ~90%+ (3nm, 5nm)
Samsung         | ~8%
Intel Foundry   | ~2%
Others          | <1%

Process Nodes

Node Comparison:

Node    | Transistor Density | Example Chips
--------|-------------------|------------------
3nm     | 300M/mm²          | A17 Pro, M3
5nm     | 170M/mm²          | A15, M1, H100
7nm     | 100M/mm²          | A100, M1 Ultra
10nm    | 50M/mm²           | Intel 12th gen
14nm    | 35M/mm²           | Many current chips
22/28nm | 15M/mm²           | IoT, automotive

AI Chip Production:

Chip         | Node  | Foundry
-------------|-------|--------
NVIDIA H100  | 5nm   | TSMC
NVIDIA B200  | 4nm   | TSMC
AMD MI300X   | 5/6nm | TSMC
Google TPUv5 | 5nm   | TSMC
Apple M3     | 3nm   | TSMC
Intel Gaudi  | 7nm   | TSMC

Foundry Services

What Foundries Provide:

Service              | Description
---------------------|----------------------------------
Process Design Kit   | Design rules, models, IP
Manufacturing        | Wafer fabrication
Testing              | Wafer probe, final test
Packaging            | Advanced packaging options
IP Libraries         | Standard cells, memory
Design services      | Layout, verification support

Advanced Packaging:

Technology    | Foundry    | Use Case
--------------|------------|-------------------
CoWoS         | TSMC       | HBM integration
SoIC          | TSMC       | 3D stacking
Foveros       | Intel      | 3D packaging
2.5D/3D       | Samsung    | Chiplets

Working with Foundries

Customer Tiers:

Tier    | Requirements              | Benefits
--------|---------------------------|-------------------
Premium | High volume, advanced     | Priority capacity, support
Standard| Mid volume                | Standard service
Small   | Low volume/startup        | Shuttle runs, shared masks
MPW/MLM | Multi-project wafers      | Cost sharing for prototypes

Engagement Timeline:

Phase              | Duration    | Activity
-------------------|-------------|-------------------
Technology select  | 1-3 months  | Choose node, package
PDK/IP setup       | 1-2 months  | Get design kit, license IP
Design             | 6-24 months | Create chip design
Tape-out           | 1 day       | Submit GDSII
Fabrication        | 2-3 months  | Wafer manufacturing
Packaging/test     | 1-2 months  | Assembly, validation

Geopolitical Context

Region         | Situation
---------------|----------------------------------
Taiwan         | TSMC dominance, concentration risk
South Korea    | Samsung, memory leadership
USA            | CHIPS Act, Intel expansion
China          | SMIC limited by export controls
Europe         | Limited advanced capacity
Japan          | Equipment, materials, expanding fab

Semiconductor foundries are the critical infrastructure of the AI revolution — every AI chip, from NVIDIA H100s to Apple's ML accelerators, depends on foundry manufacturing capability, making these factories among the most strategically important industrial facilities in the world.