Taiwan Semiconductor Manufacturing Company (TSMC) maintains its dominant lead in the global semiconductor foundry market, capturing 62.3% of total industry revenue in the second quarter of 2024, according to data from TrendForce. While TSMC commands the majority of contract chip production, competitive shifts are underway as Semiconductor Manufacturing International Corporation (SMIC) narrows the gap with Samsung in the worldwide rankings.
Global Foundry Market Share and Revenue Trends
The global foundry sector experienced a robust recovery in the second quarter of 2024, generating a collective $32 billion in revenue—a 9.6% sequential increase, according to TrendForce market analysis. High demand for artificial intelligence accelerators and smartphone stock replenishment fueled the expansion across major fabrication plants. TSMC led the sector comfortably, benefiting from heavy allocation for advanced-node chipsets utilized by major technology firms.
However, the competition for second place intensified during the quarter. Samsung held the second-largest market share at 11.5%, down slightly from previous periods, while China-based SMIC climbed to third place with 5.7% of the market. SMIC’s revenue grew to $1.9 billion, driven by domestic demand for mature-node semiconductors, consumer electronics, and automotive components within the Chinese market.
SMIC Gains Ground on Samsung
SMIC’s incremental gains reflect localized supply chain shifts and heavy investments in mature and specialty nodes. According to TrendForce, SMIC capitalized on regional orders and competitive pricing strategies to secure a higher utilization rate across its 8-inch and 12-inch wafer fabrication facilities. Samsung faced stiffer competition in both advanced gate-all-around (GAA) node production and legacy foundry contracts, narrowing the revenue gap between the two companies to roughly 5.8 percentage points.
Industry analysts point out that while Samsung retains a distinct technological advantage in cutting-edge 3nm and 4nm gate architecture, SMIC continues to capture high-volume orders for older, non-extreme ultraviolet (non-EUV) nodes. This bifurcation highlights a shifting landscape where geopolitical factors and regional self-sufficiency initiatives drive demand toward local foundries like SMIC.
Market Outlook for Advanced and Mature Nodes
The worldwide foundry hierarchy hinges on capacity expansions for both advanced artificial intelligence hardware and standard industrial components. According to TrendForce, capital expenditure plans among major players remain focused on securing high-bandwidth memory (HBM) integration and sub-5nm manufacturing lines. TSMC plans to expand its CoWoS (Chip-on-Wafer-on-Substrate) packaging capacity to alleviate persistent AI chip bottlenecks, ensuring its revenue lead remains secure through the remainder of the fiscal year.
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