Core Insights - The Foundry 2.0 market is expected to see a 19% year-over-year revenue growth in Q2 2025, driven by advancements in process technology and packaging [1] - TSMC's new definition of Foundry 2.0 includes not only traditional wafer manufacturing but also packaging, testing, and photomask production, expanding the market size to nearly $250 billion in 2023, compared to $115 billion under the old definition [1] Group 1 - TSMC's advanced packaging revenue is approaching 10%, highlighting its significance for both the company and its clients, which led to the introduction of Foundry 2.0 to encompass the entire business process [2] - TSMC's market share increased from 31% to 38% year-over-year in Q2, benefiting from the ramp-up of 3nm production and high utilization rates of 4/5nm processes driven by AI GPU demand [2] - The OSAT segment is projected to grow from 5% to 11% year-over-year, with significant contributions from companies like ASE [2] Group 2 - The importance of advanced packaging technology is rising, with chip manufacturers expected to increasingly rely on it to enhance chip performance, positioning TSMC to maintain its leadership in both advanced process and packaging sectors [3] - IDC forecasts that the Foundry 2.0 market will reach $298 billion in 2025, marking an 11% year-over-year growth, transitioning from a recovery phase in 2024 to a growth phase in 2025 [3] - The compound annual growth rate (CAGR) for the Foundry 2.0 market is expected to be 10% from 2024 to 2029, driven by sustained AI demand and a gradual recovery in non-AI demand [3]