TSMC Reports Q2 Revenue of 28.5 Trillion Won
Samsung Electronics Also Posts Q2 Earnings Surprise
DS Division Revenue Estimated at 27 to 28 Trillion Won
Attention Focused on Final Results to Be Confirmed at Month-End
Samsung Electronics' performance in the second quarter of this year has improved, and the industry suggests that the semiconductor division's sales may have surpassed those of Taiwan's TSMC for the first time in about two years. If this is the case, it would be the first time in eight quarters. Previously, Samsung Electronics lost the world's top semiconductor sales position to TSMC in the third quarter of 2022 due to a memory market downturn and had been trailing TSMC for seven consecutive quarters until the first quarter of this year.
According to the industry on the 14th, TSMC, the world's largest foundry (semiconductor contract manufacturing) company, recorded sales of 673.51 billion New Taiwan dollars in the second quarter of this year, a 32% increase compared to the same period last year. This amounts to approximately 28.5 trillion Korean won.
This figure significantly exceeded the market forecast, which was initially around 650 billion New Taiwan dollars. TSMC, which counts Nvidia and Apple among its clients, is believed to have achieved substantial sales in the second quarter, driven by growth in the artificial intelligence (AI) market.
Samsung Electronics also posted an operating profit of 10.4 trillion won in the second quarter, marking an 'earnings surprise.' Sales reached 74 trillion won, a 23.31% increase compared to the same period last year.
Samsung Electronics did not disclose segment-specific results in its preliminary earnings announcement on the 5th. However, securities firms estimate that the Device Solutions (DS) division, which handles semiconductor business, recorded sales in the range of 27 to 28 trillion won. This is nearly double the 14.73 trillion won sales in the second quarter of last year and about 20% higher than the 23.14 trillion won sales in the first quarter of this year.
Currently, securities firms' forecasts for Samsung Electronics' DS division sales in the second quarter range from a minimum of 27 trillion won (BNK Investment & Securities) to a maximum of 28.8 trillion won (Hanwha Investment & Securities).
If the confirmed second-quarter results for Samsung Electronics, to be released at the end of this month, show DS division sales exceeding 28.5 trillion won, it could surpass TSMC's sales.
Previously, in the third quarter of 2022, Samsung Electronics lost its sales lead to TSMC, also relinquishing its position as the world's top semiconductor company by sales.
However, since Samsung Electronics is a comprehensive semiconductor company covering both memory and non-memory sectors, while TSMC focuses solely on foundry services, their business portfolios differ, making direct performance comparisons difficult. Moreover, when considering only the foundry segment where their businesses overlap, TSMC still holds a dominant lead. In the first quarter, TSMC's foundry market share was 61.7%, compared to Samsung Electronics' 11%, showing a significant gap.
Nevertheless, considering the stature of these two companies, which lead and compete in the global semiconductor market, the symbolic significance of being number one in sales is recognized within the industry.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
