Samsung trails TSMC despite chip market share surge

Key Points:

  • Samsung Foundry ranks as the world’s second-largest chip maker in Q1 2024, yet remains far behind TSMC.
  • Despite gains in market share, Samsung’s efforts to rival TSMC have yet to materialize into significant business growth.
  • Samsung’s ambitious plans to surpass TSMC include hefty investments and the construction of advanced chip-making plants.

In the fiercely competitive realm of semiconductor chip manufacturing, Samsung Foundry has made notable strides, emerging as the world’s second-largest player in Q1 2024, as per Counterpoint Research. However, despite this upward trajectory, the company finds itself trailing significantly behind its chief rival, Taiwan Semiconductor Manufacturing Company (TSMC).

While Samsung’s market share has expanded to 13%, a two-percentage-point increase from the previous year, the gap between it and TSMC remains substantial. This discrepancy underscores the challenges Samsung faces in translating its ambitions into tangible business growth.

Efficiency-related issues have plagued Samsung, leading to the loss of key clients like Apple, Nvidia, and Qualcomm to TSMC. In response, Samsung has pinned its hopes on its 2nm and 3nm process nodes to win back these clients and close the gap with its Taiwanese counterpart.

TSMC’s dominance in the market is indisputable, with a commanding 62% market share in Q1 2024. Its roster of clients reads like a who’s who of the chip industry, including AMD, Apple, Intel, MediaTek, Nvidia, and Qualcomm, all of whom rely on TSMC for chip production.

Despite the uphill battle, Samsung Foundry remains undeterred. With a strategic investment plan totaling $115 billion and the construction of advanced chip-making facilities, including a prominent plant in the US, Samsung aims to position itself as the world’s leading chip manufacturer by 2030.

As the race for chip supremacy intensifies, Samsung’s commitment to innovation and expansion sets the stage for an intriguing battle with TSMC in the years to come.

Blight Mojave
Blight is an aspiring Samsung enthusiast and technology aficionado, dedicated to exploring the extraordinary realms facilitated by cutting-edge innovations. He is passionate about Artificial Intelligence (AI) and its potential to transform industries, enhance human experiences, and shape a better future. Fascinated by the delicate beauty and he is captivating essence of flowers, finding solace in their presence. He is constantly seeking knowledge and growth, eager to connect with like-minded individuals and build meaningful relationships.