TSMC Solidifies Dominance with 73% Foundry Share
Taiwan’s TSMC is solidifying its solo dominance in the global foundry (semiconductor contract manufacturing) market. As the market itself grows due to the expanding demand for artificial intelligence (AI) semiconductors, TSMC accounted for a market share reaching 73%, widening the gap with second-pl
Taiwan Semiconductor Manufacturing Company (TSMC) is cementing its unparalleled dominance within the global semiconductor foundry sector. As the demand for artificial intelligence (AI) semiconductors escalates, driving market expansion, TSMC holds a commanding market share of 73%, outpacing its closest competitor, Samsung Electronics, by 66 percentage points.
Counterpoint Research revealed on August 28 that the global foundry market experienced a 29% growth from the previous year's second quarter, propelled by a surge in AI semiconductor orders and the adjustment of production capabilities. The market remains plagued by a supply-demand imbalance, affecting both advanced and mature processes.
TSMC, the undisputed leader, captured 73% of the global foundry market in Q2, securing first place consistently over two consecutive quarters. Simultaneously, Samsung Electronics maintained its second-place position, with a static market share at 7%.
The expanding foundry market, bolstered by the debut of production for the 2-nanometer process, saw TSMC scaling up its production of the 3-nanometer process. Nonetheless, ongoing supply shortages in 8-inch and 12-inch mature processes, alongside advanced packaging challenges, further cemented TSMC's market supremacy. The company's foundry market share remained steady at 73% for two consecutive quarters.
Even with a 29% growth in the global foundry market, the existing 66-point gap between TSMC and Samsung Electronics appears unlikely to narrow significantly. Samsung Electronics continues to prioritize enhancing the yield of its SF2, the forthcoming foundry process. Analysts attribute the revenue growth to the rising demand for SF4 and SF5 processes and the increase in foundry wafer prices during the first half of the year.
China's SMIC claimed the third spot, benefiting from escalating overseas orders and robust domestic demand in China. SMIC hit its highest-ever revenue in the second quarter, continuing the upswing in the Chinese foundry market. The foundry market's growth trajectory is anticipated to persist in the second half of the year.
Counterpoint Research projects a further increase in the average selling price (ASP) of foundry wafers in the latter half of the year, with pure-play foundry companies maintaining a relatively high utilization rate. The research firm noted, "While TSMC's overwhelming market leadership is solidified, the focus now shifts to the extent to which Samsung Electronics can narrow the gap by emphasizing its advanced process competitiveness."
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