Financial research concept

Foundry Second-Largest-Customer Revenue Concentration

Foundry second-largest-customer revenue concentration measures the percentage of revenue generated by the foundry's second-largest customer.

By Lee BaileyPublished Sep 25, 2026

Research context

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Research date: Sep 25, 2026Use the dated article and cited sources for the definition, examples, and stated limitations.
Operating-model context: 19 connected conceptsPart of the reviewed Semiconductor Foundry Economics; issuer definitions remain distinct where disclosed.
Company examples: 1 reviewed companyRelationships reflect supported examples, not a normalized cross-company KPI ranking.

The second customer became much more important
The top two represented 36%
Rank changes can matter without customer names
Part of the Semiconductor Foundry Economics
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Foundry second-largest-customer revenue concentration measures the share of revenue generated by the foundry's second-largest customer.

TSMC reported that its second-largest customer represented 17% of net revenue in 2025, up from 12% in 2024 and 11% in 2023.

The second customer became much more important

The six-point increase from 11% to 17% offset part of the diversification visible in the declining largest-customer share.

That is why concentration should be analyzed across several ranks rather than from the largest customer alone.

The top two represented 36%

TSMC's largest customer was 19% and its second-largest was 17%, so the top two customers accounted for 36% of 2025 net revenue.

With the top ten at 78%, the remaining eight of the top ten accounted for 42%. That bridge separates two very large relationships from the rest of the concentrated customer group.

Rank changes can matter without customer names

TSMC does not need to identify customers for the concentration trend to be analytically useful. Compare this measure with Largest-Customer Revenue Concentration and Top-Ten Customer Revenue Concentration.

Primary source: TSMC 2025 Form 20-F.

Part of the Semiconductor Foundry Economics

Connect end-market and process-node mix, customer concentration, manufacturing breadth, wafer capacity, utilization, shipments, pricing, and yield to understand pure-play semiconductor foundry economics.

Browse the full operating model in Company Analysis →

Where this concept fits

Customer concentration and manufacturing breadthCurrent relationship
Largest, second-largest, and top-ten customer concentration show dependence on major customers, while customer count, product count, and process-technology count show the breadth of the manufacturing ecosystem. Breadth does not negate concentration because a small number of customers can still drive most revenue.
Foundry Customer Count Largest-Customer Revenue Concentration Foundry Process Technology Count Foundry Product CountSecond-Largest-Customer Revenue ConcentrationCurrent conceptTop-Ten Customer Revenue Concentration
Platform and process-node mix
HPC, smartphone, IoT, automotive, and digital-consumer-electronics revenue mix show where foundry demand originates. Advanced-technology wafer revenue mix and process-node revenue mix show which manufacturing generations monetize that demand without treating end-market categories as process nodes.
Advanced-Technology Wafer Revenue Mix Automotive Revenue Mix Digital Consumer Electronics Revenue Mix HPC Revenue Mix IoT Revenue Mix Smartphone Revenue Mix Process-Node Revenue Mix
Capacity, utilization, output, pricing, and yield
Annual 12-inch-equivalent capacity and wafer manufacturing capacity describe production scale, capacity utilization shows how much of that scale is being used, wafer shipments measure output, wafer average selling price measures realized pricing, and manufacturing yield indicates how effectively processed wafers become usable product.
Annual 12-Inch-Equivalent Wafer Capacity Foundry Capacity Utilization Semiconductor Manufacturing Yield Wafer Average Selling Price Wafer Manufacturing Capacity Wafer Shipments

See It in Company Research

These companies are examples of how the concept is reported or discussed in public filings. Definitions can differ by issuer; these links open company research rather than a normalized metric comparison.

TSMOpen operating-model research →19 of 19 reviewed concepts in Semiconductor Foundry EconomicsCustomer concentration and manufacturing breadth6 of 6 bridge concepts supportedContinue through this bridge:Foundry Customer Count Foundry Process Technology Count Foundry Product Count Largest-Customer Revenue Concentration Top-Ten Customer Revenue Concentration

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Compare public companies

Compare the second-largest relationship with the largest customer and the remaining top-ten revenue pool.

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