2H25 Foundry Utilization Surpasses Forecasts Amid AI Demand and Tariff Delays

In the second half of 2025, wafer foundry utilization has held up better than expected, according to TrendForce's recent investigations. This resilience stems from several developments: the delay in U.S. semiconductor tariffs, reduced inventory among IC vendors, the seasonal peak in smartphone demand, and sustained high demand for AI applications. These elements have offset the anticipated drop in capacity utilization.

Certain foundries are set to see improved performance in the fourth quarter of 2025 compared to the third quarter, leading multiple industry participants to evaluate price adjustments for specialized processes, including BCD and power-related nodes.

TrendForce notes that earlier market expectations for U.S. semiconductor tariffs in the second half of 2025 aligned with a slowdown in restocking for consumer electronics like TVs, which had raised concerns about a fourth-quarter decline in foundry utilization. With tariffs remaining unannounced, IC design houses that had cut back on wafer starts are now restocking inventories and ramping up orders for smartphone and PC platforms.

AI server peripheral ICs are generating additional orders, diverting capacity originally earmarked for consumer chips. Inventory for industrial control chips has dropped to normal levels, encouraging manufacturers to resume restocking. Consequently, foundry utilizatio...