TSMC market share hits 64% in Q3 2024: Counterpoints Research

Taipei, Jan. 13 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) secured a 64 percent share of the global pure play foundry business in the third quarter of last year, up from 62 percent a quarter earlier, further cementing the company's lead over its peers, according to market research firm Counterpoint Research.

In a report, Counterpoint said the better than expected market share enjoyed by TSMC was bolstered by high utilization rates in its advanced 5 nanometer and 3nm processes and also fueled by strong global artificial intelligence accelerator demand and smartphone sales.

South Korea's Samsung Electronics Corp. came in second with a 12 percent share of the global market, on the back of an increase in shipments of chips made on its 4nm and 5nm processes.

It was followed by China's Semiconductor Manufacturing International Corp. (SMIC), which secured 6 percent taking advantage of solid demand for mature processes such as the 28nm process.

United Microelectronics Corp., another contract chipmaker in Taiwan, tied with U.S.-based GlobalFoundries Inc. to take a 5 percent share in the third quarter, in the wake of stable demand in the Internet of Things and communications infrastructure markets, Counterpoints said.

Counterpoint also said that the 3nm process rose to second place in the third quarter by taking a 13 percent share of the global market.

It replaced 7/6nm technology (11 percent) on the back of the full utilization of TSMC's 3nm production capacity, as production by U.S.-based consumer electronics giant Apple Inc., American smartphone IC designer Qualcomm Inc., U.S. chipmaker Intel Corp. and Taiwan's smartphone IC designer MediaTek Inc. gained momentum.

The 5/4nm process took first place in the global market by securing 24 percent of the market in the third quarter, driven by strong AI demand, including American AI chip designer Nvidia Corp.'s Blackwell graphics processing units, Counterpoint said.

TSMC is prepared to start commercial production of the more sophisticated 2nm process at its fab in Baoshan, Hsinchu later this year, making the plant the chipmaker's first fab to roll out chips made on that particular technology.

Local media reported Monday that another TSMC 2nm fab located in Kaohsiung will start a trial run later in January, though the company ahead of an investor conference slated for Thursday, declined to comment on the report.

The 2nm process will be 10-15 percent faster than the current N3E, an enhanced version of the 3nm process, and consume less power. In addition, density will also be more than 15 percent higher.