Taiwan Semiconductor Remains the Leading Chipmaker in Q3 2024

Taiwan Semiconductor Manufacturing Co (TSM) has successfully maintained its dominance in the global wafer foundry market during the third quarter of 2024. The company's market share has increased to 64.9%, up from 62.3% in the previous quarter, surpassing Samsung Electronics Co (SSNLF) as demand for flagship smartphone products and high-performance computing (HPC) devices continues to rise, according to a report by TrendForce.

In the third quarter, TSM reported a remarkable 39% growth in revenue, reaching $23.5 billion. This significant increase is attributed to higher production capacity, improved wafer shipment, and robust demand in key sectors.

The company’s success can be linked to the rising need for smartphones and AI-related technology, particularly its advanced 3nm processes, which have been particularly beneficial thanks to major clients like Apple Inc (AAPL). This growth came at a time when Samsung faced intense competition from Chinese manufacturers, leading to a decline in its market share to 9.3%, down from 11.5% in the second quarter.

The overall sales from the top wafer foundry operators reached $34.9 billion, reflecting a sequential increase of 9.1%, largely driven by the advancement of 3nm technology.

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

Looking ahead, TrendForce anticipates strong demand for emerging technologies, which is expected to bolster sales among the top ten wafer foundry operators in the fourth quarter of 2024.

Taiwan Semiconductor and GlobalFoundries are also key players in obtaining U.S. chip subsidies, with TSM receiving a notable $6.6 billion grant for its semiconductor project in Phoenix, Arizona, while GlobalFoundries secured $1.5 billion for its facilities located in New York and Vermont.

Analyst Jack Huang from SinoPac Financial predicts that TSM's business will grow by approximately 20% by 2025, which may contribute to a rally in Taiwan's stock market in the first half of the year.

This year, TSM's stock has seen an impressive increase of 99% year-to-date, attracting investor interest. Investors can gain exposure to TSM shares through various funds like the VanEck Semiconductor ETF (SMH) and the Global X Emerging Markets Great Consumer ETF (EMC).

Price Action: As of the last update, TSM shares were down 0.90%, trading at $201.20.

Photo by wakamatsu.h via Shutterstock

semiconductor, growth, market