Taipei: Taiwan Semiconductor Manufacturing Co. (TSMC) further cemented its lead in the global pure-play wafer foundry business as its market share hit a record 72.5 percent in the second quarter of this year, Taipei-based market information advisory firm TrendForce Corp. said Wednesday.
According to Focus Taiwan, in a research report, TrendForce stated that TSMC's sales during the April-June period totaled about US$40.20 billion, up 12.1 percent from a quarter earlier. This increase in sales was accompanied by a rise in market share, which grew from 72.3 percent in the January-March period to 72.5 percent. TSMC benefited significantly from the ongoing artificial intelligence (AI) boom, with its advanced 3- and 5-nanometer processes fully utilized to meet the rising demand for AI servers. Additionally, Apple Inc.'s inventory buildup ahead of its new iPhone launch contributed to the chipmaker's robust sales performance.
AI chip giant Nvidia Corp. and Apple are two of TSMC's largest clients. During the second quarter, TSMC recorded increases in shipments and its average selling price, further solidifying its dominance in the global market, according to TrendForce.
Meanwhile, South Korea's Samsung Electronics Co. secured the second position with a market share of 5.9 percent in the second quarter, a decrease from 6.5 percent in the first quarter. Despite this drop, Samsung's sales experienced a 1.8 percent increase from the previous quarter, reaching US$3.26 billion. This growth was driven by an increase in new advanced-process orders, including HBM base dies, as reported by TrendForce.
China's Semiconductor Manufacturing International Corp. (SMIC) held the third position with a 5.4 percent market share, up from 5.1 percent in the first quarter. SMIC's sales grew 20.0 percent from the previous quarter to approximately US$3.01 billion, narrowing the gap with Samsung.
The top 10 was completed by Taiwan's United Microelectronics Corp. (US$2.18 billion, 3.9 percent), U.S.-based GlobalFoundries (US$1.79 billion, 3.2 percent), China's Huahong Group (US$1.27 billion, 2.3 percent), Israel's Tower Semiconductor Ltd. (US$460 million, 0.8 percent), Taiwan's Vanguard International Semiconductor Corp. (US$451 million, 0.8 percent), China's Nextchip Semiconductor Corp. (US$447 million, 0.8 percent), and Taiwan's Powerchip Semiconductor Manufacturing Corp. (US$432 million, 0.8 percent).
In the second quarter, the top contract chipmakers achieved US$53.49 billion in combined sales, marking an 11.5 percent increase from a year earlier. This growth was fueled by AI development, which boosted demand for high-end chips. Furthermore, demand for power management solutions and consumer electronics supply chains, including TVs, PCs, and notebook computers, drove up shipments of mature chips during the quarter.
The top 10 contract chipmakers accounted for 96.5 percent of total sales in the second quarter, as outlined by TrendForce. Looking ahead, TrendForce anticipates that sales in the global pure-play wafer foundry market will rise, driven by strengthening demand from consumer IC designers and continued strong AI demand. The peak season for smartphones in the third quarter is also expected to provide an additional boost to contract chipmakers.