Samsung Sees Q4 2024 Foundry Market Share Diminish Against TSMC, Orders Drop From Key Clients Widen Trade Gap by 59%

The competitive landscape of the semiconductor foundry industry is witnessing a pronounced shift, with TSMC dominating the sector at the end of 2024. Thanks to a deluge of orders for its advanced manufacturing nodes and the capability to launch new architectures without significant yield challenges, TSMC’s ascendancy is putting Samsung at a considerable disadvantage. This is vividly evident in the fourth quarter of 2024, where TSMC solidified its status as the world’s leading foundry, attaining record market share, while Samsung’s situation has seen its market share dwindle to single digits.

Q4 2024 Highlights: TSMC’s Revenue Peaks While Samsung Struggles

Recent figures from TrendForce, reported by The Chosun Daily, reveal that TSMC’s revenue soared to an impressive $26.85 billion during the fourth quarter of 2024, marking a notable 14.1 percent increase year-over-year. In contrast, Samsung’s market share plummeted to 8.1 percent, reflecting a decrease from 9.1 percent just a quarter earlier. This alarming trend has expanded the gap between TSMC and Samsung, which now stands at 59 percentage points—widening from 55.6 percentage points in Q3 2024.

TSMC has effectively capitalized on a robust demand across various sectors, including AI servers, high-end smartphone systems-on-chip (SoCs), and newer PC architectures. These factors have driven a notable surge in wafer shipments, further solidifying TSMC’s leadership. On the other hand, while Samsung has made strides with its 2nm Gate-All-Around (GAA) technology achieving a commendable 30 percent yield in trial production, the company has struggled with earnings due to a significant dip in orders from key clients that failed to compensate for revenue losses.

Specifically, Qualcomm has opted to exclusively collaborate with TSMC for its advanced Snapdragon 8 Elite Gen 2 processor, utilizing the latest third-generation 3nm ‘N3P’ technology. During the same quarter, TSMC’s robust financial performance stood in stark contrast to Samsung’s revenue, which slumped by 1.4 percent to just $3.26 billion. Additionally, SMIC, China’s leading semiconductor company, is also in pursuit of overtaking Samsung, but its potential growth may be stymied due to limited access to cutting-edge Extreme Ultraviolet (EUV) lithography equipment.

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