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TSMC Market Share Hits Record 71% as Samsung Struggles to Compete.Taiwan Semiconductor Manufacturing Company (TSMC) has solidified its dominance in the global chipmaking industry. New market data reveals the foundry giant captured a record share of the contract chip manufacturing market in the second quarter. This growth widens the already significant gap between TSMC and its closest rival, Samsung Electronics.According to Counterpoint Research, the pure-play foundry market saw intense demand for advanced semiconductors. TSMC’s lead is largely attributed to the artificial intelligence boom. The company is the primary producer for the world’s most advanced AI processors.

An Unassailable Lead in Advanced Chip Production

TSMC’s market share rose to 71% in Q2. This is a significant increase from 65% one year ago. The company’s control over the most advanced manufacturing processes is the key driver.Samsung Foundry secured a distant second place. The South Korean company held just 8% of the market. China’s Semiconductor Manufacturing International Corporation (SMIC) followed in third with a 5% share. These figures highlight the immense challenge facing TSMC’s competitors.TSMC’s 3-nanometer and 5-nanometer technology nodes are in extremely high demand. Major tech firms designing AI chips rely almost exclusively on TSMC for production. This has created a cycle of investment and technological advancement that is difficult to match.

Can Samsung Close the Foundry Gap?

Samsung is investing heavily to catch up. The company recently secured a major $16.5 billion deal to supply chips to Tesla. It is also competing for a contract to manufacture Qualcomm’s next-generation Snapdragon processors using its 2nm technology.Despite these potential wins, analysts say Samsung has a long road ahead. Winning a few high-profile contracts is not enough to erode TSMC’s foundational lead. The Taiwanese firm continues to secure the lion’s share of orders from a diverse range of clients.The stability and proven yield of TSMC’s processes make it the preferred choice for many companies. For Samsung to truly compete, it must demonstrate consistent, high-volume production at the most advanced nodes. This will require sustained investment and technological breakthroughs over many years.

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The latest market share data confirms TSMC’s position as the undisputed leader in semiconductor manufacturing. The company’s record 71% share underscores its critical role in the global tech supply chain. For now, the TSMC market share story is one of overwhelming dominance that competitors are struggling to challenge.

Info at your fingertips

What is a pure-play foundry?

A pure-play foundry is a company that manufactures chips designed by other firms. It does not design its own semiconductor products. This model separates chip design from fabrication.

Why is TSMC so dominant?

TSMC has consistently led in developing the most advanced chipmaking technology. It also maintains high production yields and reliability. This makes it the trusted partner for companies like Apple and Nvidia.

What is Samsung doing to compete?

Samsung is aggressively investing in its next-generation 2nm chip process. It is also pursuing major deals with automotive and mobile clients. The company aims to begin mass production of 2nm chips by 2025.

How does this affect consumers?

TSMC’s dominance can influence the price and availability of electronics. Most advanced smartphones, laptops, and AI servers rely on its chips. Supply constraints at TSMC can ripple through the entire tech market.

Who are TSMC’s other competitors?

Other competitors include Intel Foundry and GlobalFoundries. However, they also trail significantly behind TSMC in advanced process technology and market share for leading-edge chips.