Taiwan Semiconductor Maintains Dominance as Top Chipmaker

Taiwan Semiconductor Manufacturing Co (TSM) has successfully upheld its position as the leading player in the global wafer foundry market during the third quarter of 2024.

The company increased its market share to an impressive 64.9%, a significant rise from 62.3% in the previous quarter. This growth is attributed to the increasing demand for flagship smartphone products and advanced high-performance computing (HPC) devices, as reported by the Taipei Times based on a TrendForce report.

In financial terms, Taiwan Semiconductor reported a remarkable 39% increase in revenue, totaling $23.5 billion for the third quarter.

The company attributes its success to high production capacity utilization and a surge in wafer shipments, which have helped it outperform competitors.

According to Needham’s analyst, Charles Shi, the surge in demand for 3nm chips, primarily driven by Apple Inc, and advances in 5nm technology have been key contributors. Meanwhile, Samsung Electronics has faced heightened competition, especially from Chinese rivals, causing its market share to decline to 9.3%, down from 11.5% in the previous quarter.

The overall sales figure for the top wafer foundry operators reached $34.9 billion in the third quarter, marking a 9.1% increase sequentially as the advanced 3nm process continues to gain traction.

China's Semiconductor Manufacturing International Corp held the third position with a market share of 6.0%, followed by United Microelectronics Corp (UMC) at 5.2% and GlobalFoundries Inc (GFS) at 4.8%.

Looking ahead, TrendForce anticipates a strong global demand for emerging technologies, which is expected to further bolster sales among the top ten wafer foundry operators in the upcoming fourth quarter.

Taiwan Semiconductor and GlobalFoundries are also prominent contenders for U.S. semiconductor subsidies. Taiwan Semiconductor has secured a substantial $6.6 billion grant for its semiconductor manufacturing project in Phoenix, Arizona, while GlobalFoundries has received $1.5 billion for its facilities in Malta, New York, and Burlington, Vermont.

According to Jack Huang from SinoPac Financial, Taiwan Semiconductor is projected to achieve a business growth of 20% in 2025, which may contribute to a rise in the Taiex index, the benchmark weighted index on the Taiwan Stock Exchange, during the first half of the year.

Year-to-date, the stock for Taiwan Semiconductor has seen a remarkable ascent, surging 99%. Investors looking to gain exposure can consider options such as the VanEck Semiconductor ETF (SMH) or the Global X Emerging Markets Great Consumer ETF (EMC).

Current Price Action: At the last update, TSM stock traded 0.90% lower at $201.20.

Taiwan, Semiconductor, Chipmaker