Wafer foundry utilization during the second half of 2025 has remained more resilient than anticipated, according to TrendForce. Several factors are contributing to this, including the postponed U.S. semiconductor tariffs, low inventory at IC vendors, the peak smartphone season, and ongoing high demand for AI. These conditions have prevented the expected decline in capacity utilization.

In fact, some foundries are poised to perform better in 4Q 2025 than in 3Q 2025, prompting many industry players to consider increasing prices for specialized process platforms like BCD and power-related nodes.

TrendForce observes that the market’s initial anticipation of U.S. semiconductor tariffs for 2H 2025 coincided with certain consumer electronics, such as TVs, entering their seasonal restocking slowdown, which could lead to a decline in foundry utilization in the fourth quarter. However, since tariffs are still unannounced, IC design houses—who had previously reduced wafer starts—are now replenishing inventories and increasing procurement for upcoming smartphone and PC platforms.

Meanwhile, AI server peripheral ICs continue to drive incremental orders, even taking capacity that was initially allocated for consumer chips. Inventory levels for industrial control chips have also decreased to healthy levels, prompting manufacturers to restart restocking efforts. As a result, foundry utilization in 4Q25 is expected to stay largely consistent with 3Q 2025, exceeding earlier estimates.

Wafer foundry utilization during the second half of 2025 has remained more resilient than anticipated, according to TrendForce. Several factors are contributing to this, including the postponed U.S. semiconductor tariffs, low inventory at IC vendors, the peak smartphone season, and ongoing high demand for AI. These conditions have prevented the expected decline in capacity utilization.

In fact, some foundries are poised to perform better in 4Q 2025 than in 3Q 2025, prompting many industry players to consider increasing prices for specialized process platforms like BCD and power-related nodes.

TrendForce observes that the market’s initial anticipation of U.S. semiconductor tariffs for 2H 2025 coincided with certain consumer electronics, such as TVs, entering their seasonal restocking slowdown, which could lead to a decline in foundry utilization in the fourth quarter. However, since tariffs are still unannounced, IC design houses—who had previously reduced wafer starts—are now replenishing inventories and increasing procurement for upcoming smartphone and PC platforms.

Meanwhile, AI server peripheral ICs continue to drive incremental orders, even taking capacity that was initially allocated for consumer chips. Inventory levels for industrial control chips have also decreased to healthy levels, prompting manufacturers to restart restocking efforts. As a result, foundry utilization in 4Q25 is expected to stay largely consistent with 3Q 2025, exceeding earlier estimates.

By: DocMemory
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