Samsung-TSMC Foundry Gap Widens... 3Q Sales Increase but Market Share Difference at 45.5%P

TrendForce Analysis
Market Share: TSMC 57.9%, Samsung 12.4%
Global Foundry Revenue Up 8%

Samsung Electronics' foundry (semiconductor contract manufacturing) sales increased in the third quarter of this year. This was due to increased orders for Qualcomm's mid-range 5th generation (5G) AP system-on-chip (SoC) and modem, as well as 28-nanometer organic light-emitting diode (OLED) DDI (display driver IC). However, the market share gap with Taiwan's TSMC, the world's number one foundry, widened further.

On the 6th, market research firm TrendForce reported that Samsung Electronics' foundry sales in the third quarter reached $3.69 billion, up 14.1% from the previous quarter. Market share rose 0.7 percentage points (p) from 11.7% in the second quarter to 12.4% in the third quarter.

Seoul Samsung Electronics Seocho Building. Photo by Jinhyung Kang aymsdream@

During the same period, the top foundry TSMC's sales increased 10.2% to $17.249 billion. Its market share also rose from 56.4% in the second quarter to 57.9% in the third quarter.

The market share gap between TSMC and Samsung Electronics slightly expanded from 44.7%p in the second quarter to 45.5%p in the third quarter.

The combined sales of the global top 10 foundry companies in the third quarter reached $28.286 billion, up 7.9% from the previous quarter.

TrendForce analyzed, "The global foundry industry was dynamic in the third quarter due to urgent order increases for smartphone and laptop components," adding, "The launch of new iPhone and Android products in the second half of the year and healthy inventory levels led to this surge in orders." They also noted, "The high-cost 3-nanometer manufacturing processes of TSMC and Samsung Electronics positively impacted sales."