TSMC's market share hits record 72.5% in Q2

Taipei, Sept. 9 (CNA) 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.

In a research report, TrendForce said TSMC's sales during the April-June period totaled about US$40.20 billion, up 12.1 percent from a quarter earlier, while its market share rose to 72.5 percent from 72.3 percent in the January-March period.

TrendForce said TSMC benefited from the current artificial intelligence (AI) boom, with production capacity for its advanced 3- and 5-nanometer processes fully utilized to meet demand for AI servers. Apple Inc.'s inventory buildup ahead of the launch of its new iPhones also boosted the chipmaker's sales.

AI chip giant Nvidia Corp. and Apple are two of TSMC's largest clients.

In the second quarter, TSMC recorded increases in shipments and its average selling price, further solidifying its lead in the global market, TrendForce said.

South Korea's Samsung Electronics Co. came in a distant second with a market share of 5.9 percent in the second quarter, down from 6.5 percent in the first quarter, although its sales rose 1.8 percent from a quarter earlier to US$3.26 billion amid an increase in new advanced-process orders, including HBM base dies, TrendForce said.

China's Semiconductor Manufacturing International Corp. (SMIC) took third place with a 5.4 percent market share in the second quarter, up from 5.1 percent in the first quarter, as its sales grew 20.0 percent from a quarter earlier to about US$3.01 billion, narrowing the gap with Samsung.

Rounding out the top 10 were 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 posted US$53.49 billion in combined sales, up 11.5 percent from a year earlier as AI development boosted demand for high-end chips, the report said. In addition, demand for power management solutions and continued demand from consumer electronics supply chains, including TVs, PCs and notebook computers, pushed up shipments of mature chips in the quarter, the report added.

The top 10 contract chipmakers accounted for 96.5 percent of total sales in the second quarter, TrendForce said.

Looking ahead, TrendForce said sales in the global pure-play wafer foundry market are expected to rise as demand from consumer IC designers strengthens and AI demand remains strong. Smartphones are also entering their peak season in the third quarter, providing an additional boost to contract chipmakers, TrendForce added.