Demand for artificial intelligence (AI) semiconductors is significantly reshaping the global foundry market. TSMC solidified its dominance with a market share exceeding 70% in the first quarter of this year, while Samsung Electronics experienced a decline in market share despite an increase in revenue.
According to market research firm TrendForce, the revenue of the top 10 global foundry companies reached $47.953 billion in the first quarter, marking a 30.7% increase year-over-year and a 3.7% rise from the previous quarter, setting a new record for quarterly revenue.
The growth in the market was driven by strong demand for high-performance computing (HPC) chips for AI applications. Shipments of advanced semiconductors and related components for AI servers remained robust, and inventory replenishment in the consumer electronics supply chain mitigated the seasonal downturn.
TSMC reported first-quarter revenue of $35.855 billion, with a market share of 72.3%, an increase of 4.6 percentage points from the same period last year. Its revenue grew by 40.5%, outpacing the average market growth rate.
Samsung Electronics recorded first-quarter revenue of $3.21 billion, with a market share of 6.5%. Although its revenue increased by 10.6% year-over-year, its market share fell by 1.2 percentage points. Consequently, the gap between TSMC and Samsung's market shares widened from 59.9 percentage points in the first quarter of last year to 65.8 percentage points in the first quarter of this year.
Industry analysts suggest that Samsung's ability to rebound in the foundry sector hinges on securing advanced process customers, particularly large clients like NVIDIA, AMD, and Apple. The success of Samsung's foundry division will also depend on achieving yield rates for its 2-nanometer process and securing customers for its Taylor, Texas facility.
China's SMIC reported first-quarter revenue of $2.555 billion, an 11.5% increase from the previous year, with a market share of 5.1%. The gap in market share between Samsung and SMIC narrowed from 1.7 percentage points in the first quarter of last year to 1.4 percentage points in the first quarter of this year.
The foundry market is expected to continue its growth trend in the second quarter. TrendForce predicts that demand for AI-related advanced nodes and power management products will remain stronger than anticipated, potentially leading to new revenue highs for the top 10 companies.
Price increases in the second half of the year could also be a factor. Foundry companies have indicated potential wafer price hikes, leading to speculation that clients may expedite orders to secure supply.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.