Samsung Foundry has outperformed its competitors in the semiconductor industry, such as TSMC and Intel, as reflected in its recent quarterly revenue reports. The Korean company’s foundry division has experienced a significant uptrend, narrowing the gap with TSMC.
For the second quarter of 2024, industry analyst Dan Nystedt reported that Samsung Electronics regained the title of the largest semiconductor manufacturer by revenue, surpassing TSMC, the leader for the previous seven quarters, with Intel trailing further behind.
Samsung’s chip business generated $20.84 billion in revenue in Q2 2024. This figure, converted from the Korean won, shows a slight lead over TSMC, which reported $20.82 billion. Though the difference is minor, it is notable given the context of the industry dynamics. Intel’s chip division, on the other hand, reported $12.83 billion in revenue for the same period, significantly less than its competitors.
Samsung has shown increased competitiveness by securing mainstream deals and identifying early opportunities. The firm’s memory division has been particularly active with HBM3 and HBM3E qualifications for NVIDIA, enhancing its reliability and leading to increased revenue.
While it’s premature to declare Samsung’s chip business as definitively surpassing TSMC based solely on Q2 2024 revenues, it is clear that the competition remains intense. TSMC still leads in operating profits and gross margins, owing to the high demand for its 3nm and 5nm processes. The future will reveal how Samsung and TSMC continue to compete in this ever-evolving market landscape.
