The global pure-play foundry (semiconductor contract manufacturing) market grew 29% in the second quarter from a year earlier on the back of increased orders for artificial intelligence (AI) chips. TSMC, the world leader, posted a 73% market share, maintaining its gap with Samsung Electronics.
On the 28th, market research firm Counterpoint Research said TSMC's share in the global pure-play foundry market in the second quarter was 73%. It matched the level of the first quarter, marking two consecutive quarters at the same share. It was up 2 percentage points (P) from 71% in the second quarter of last year.
Samsung Electronics' foundry division held 7%, keeping second place. It was unchanged from the previous quarter and down 1 percentage point from 8% in the second quarter of last year. The gap in market share between TSMC and Samsung Electronics is 66 percentage points. Semiconductor Manufacturing International Corporation (SMIC), China's largest foundry, kept third place at 5%. Taiwan's UMC followed with 4%, and GLOBALFOUNDRIES Inc. with 3%.
Counterpoint Research analyzed that increased orders related to AI Semiconductor chips and capacity reallocation drove market growth. Shortages are continuing not only in advanced nodes but also in mature nodes.
TSMC's mass production of the 2-nanometer (nm) node and expansion of 3 nm capacity are underpinning its results. With shortages persisting in 8-inch and 12-inch mature nodes and in advanced packaging, the company is seen maintaining high utilization rates.
Samsung Electronics is focusing on improving the Production yield of its 2 nm process, "SF2." Counterpoint Research said demand for SF4 and SF5, the 4 nm and 5 nm nodes, along with foundry wafer price hikes in the first half of this year, also contributed to sales growth.
SMIC posted its highest-ever quarterly revenue in the second quarter. The firm's results were seen improving as domestic demand in China stayed solid and overseas orders flooded in beyond what it could easily handle.
Counterpoint Research forecast that in the second half of this year, average selling prices (ASP) for foundry wafers will continue to rise and major pure-play foundries will maintain relatively high utilization rates.