Taiwan Semiconductor Extends Lead As Top Chipmaker

Taiwan Semiconductor Manufacturing Co TSM maintained its global wafer foundry business turf in the third quarter of 2024.

The contract chipmaker’s market share grew to 64.9% (up from 62.3% in the second quarter) ahead of Samsung Electronics Co SSNLF as flagship smartphone products and high-performance computing (HPC) devices gain traction, the Taipei Times cites from TrendForce report.

Taiwan Semiconductor reported a 39% topline growth in the third quarter, reaching a revenue of $23.5 billion.

Also Read: Nvidia Could Become Taiwan Semi’s Third US Plant Customer, But With A Catch

The chipmaker’s production capacity utilization and wafer shipment boost helped it beat its rivals.

Taiwan Semiconductor credited smartphone and AI-related demand for its 3nm (which Needham’s Charles Shi primarily attributed to Apple Inc AAPL and 5nm technologies. 

Samsung bore the brunt of competition from Chinese rivals for advanced technology, with its market share falling to 9.3% in the quarter, down from 11.5% in the second quarter.

In the third quarter, the aggregate sales of the top wafer foundry operators stood at $34.9 billion, up 9.1%, sequentially as the advanced 3nm process gained traction.

China’s Semiconductor Manufacturing International Corp ranked third with a market share of 6.0%, ahead of United Microelectronics Corp’s UMC 5.2% and GlobalFoundries Inc’s GFS 4.8%.

TrendForce expects robust global demand for emerging technologies to boost sales of the top ten wafer foundry operators in the fourth quarter.

Taiwan Semiconductor and GlobalFoundries are key contenders for U.S. chip subsidies. Taiwan Semiconductor won a $6.6 billion grant for its Phoenix, Arizona semiconductor project, and GlobalFoundries won $1.5 billion for its facilities in Malta, New York, and Burlington, Vermont.

SinoPac Financial’s Jack Huang expects Taiwan Semiconductor

to grow its business by 20% in 2025, contributing to a Taiex rally in the first half of 2025, the benchmark weighted index on the Taiwan Stock Exchange.

Taiwan Semiconductor stock surged 99% year-to-date. Investors can gain exposure to the stock through VanEck Semiconductor ETF SMH and Global X Emerging Markets Great Consumer ETF EMC.

Price Action: TSM stock is down 0.90% at $201.20 at the last check Monday.

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