Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) secured a 64 percent share of the global pure play foundry business in the third quarter of last year, up from 62 percent a quarter earlier, further cementing the company’s lead over its peers, according to market research firm Counterpoint Research.
In a report issued on Nov. 26 last year, Counterpoint said the better than expected market share enjoyed by TSMC was bolstered by high utilization rates in its advanced 5 nanometer and 3nm processes and also fueled by strong global artificial intelligence (AI) accelerator demand and smartphone sales.
South Korea’s Samsung Electronics Co came in second with a 12 percent share of the global market, on the back of an increase in shipments of chips made on its 4nm and 5nm processes.
Photo: CNA
It was followed by China’s Semiconductor Manufacturing International Corp (SMIC, 中芯), which secured 6 percent taking advantage of solid demand for mature processes such as the 28nm process.
United Microelectronics Corp (聯電), another contract chipmaker in Taiwan, tied with US-based GlobalFoundries Inc to take a 5 percent share in the third quarter, in the wake of stable demand in the Internet of Things and communications infrastructure markets, Counterpoints said.
Counterpoint also said that the 3nm process rose to second place in the third quarter by taking a 13 percent share of the global market.
It replaced 7/6nm technology (11 percent) on the back of the full utilization of TSMC’s 3nm production capacity, as production by US-based consumer electronics giant Apple Inc, American smartphone IC designer Qualcomm Inc, US chipmaker Intel Corp and Taiwan’s smartphone IC designer MediaTek Inc (聯發科) gained momentum.
The 5/4nm process took first place in the global market by securing 24 percent of the market in the third quarter, driven by strong AI demand, including American AI chip designer Nvidia Corp’s Blackwell graphics processing units, Counterpoint said.
TSMC is prepared to start commercial production of the more sophisticated 2nm process at its fab in Hsinchu County’s Baoshan Township (寶山) later this year, making the plant the chipmaker’s first fab to roll out chips made on that particular technology.
Local media reported yesterday that another TSMC 2nm fab located in Kaohsiung will start a trial run later this month, though the company declined to comment on the report ahead of an investor conference slated for Thursday.
The 2nm process will be 10-15 percent faster than the current N3E, an enhanced version of the 3nm process, and consume less power. In addition, density will also be more than 15 percent higher.
After several years flying high as Asia’s best Nvidia Corp proxy, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is increasingly vying with other artificial intelligence (AI) stocks for investor attention. Stock traders are chasing a wider array of beneficiaries as mainstream usage of AI creates demand for hardware beyond the most-advanced chips TSMC makes for Nvidia. Subthemes from the deepening memory crunch to advances in robotics are also luring bids. At the same time, investment caps on single stocks are pushing funds to diversify, while retail investors long familiar with TSMC through its US depositary receipts are being offered a broader set of
UNDER MICROSCOPE: Taiwan detained three people who allegedly conspired to buy servers in Taiwan and export them using fraudulent documentation, prosecutors said Nvidia Corp chief executive officer Jensen Huang (黃仁勳) on Saturday urged Super Micro Computer Inc to tighten up on compliance after Taiwan detained three people this week for allegedly making fraudulent declarations about artificial intelligence (AI) servers made by its US partner. The development marked the nation’s first crackdown on semiconductor smuggling, which grew after the US slapped restrictions on exports of high-end chips such as Nvidia AI accelerators to China. Nvidia is “rigorous” in explaining regulations to all of its partners, Huang told reporters after arriving in Taipei. “Ultimately Super Micro has to run their own company,” he said in response to
TECH RELIANCE: Growth is increasingly reflecting an unequal K-shaped distribution, where technology sectors outperform and other industries struggle, an expert said Standard Chartered Bank has significantly raised its forecast for Taiwan’s economic growth to 9.5 percent this year, up from 7.6 percent previously, citing surging artificial intelligence (AI) demand driving exports, semiconductor production and investment. The upgrade reflects a sustained AI supercycle that continues to fuel demand for advanced chips and technology infrastructure, which form the backbone of Taiwan’s exports, the bank said in a report this week. “We raise our 2026 growth forecast to reflect a much stronger-than-expected first-quarter GDP figure,” Standard Chartered senior economist for greater China and Asia Tommy Wu (胡東安) said in the report. Driven largely by a 35.3 percent
Two of Taiwan’s international carriers, Starlux Airlines Co (星宇航空) and EVA Airways Corp (長榮航空), have retained the five-star airline rating awarded by international airline review organization Skytrax. Starlux was awarded the distinction for a second consecutive year, while EVA Air received it for the 11th straight year, Skytrax said in statements released yesterday and on Thursday last week, respectively. The five-star rating is considered one of the airline industry's highest honors and is awarded following professional audits of airline product and frontline service standards, Skytrax said. The ratings are based on in-depth assessments using unified global quality standards rather than customer review scores
RSS