The game moves at a fast pace, especially when talking about computer chips, which in the last few months have seen dramatic shifts. In one area, one giant stands tall, while another seems to be losing ground; rising fast is a new competitor.
Let us take the Taiwanese TSMC talking for its pride. For quite a while, their high-tech chips have been top guns, and it seems they're not ending business soon. But then why They have been quick to embrace new technology, and all the big technology companies, including NVIDIA, Apple, and AMD, are at their doorstep. This means the bank accounts of TSMC must be smiling brighter than any other time.
TSMC in Q1 of 2025 is estimated to have held 67.6% of the market of chips. Big A lot of this success can be attributed to the rise of AI. AI hardware from NVIDIA is selling likes crazy, while TSMC manufactures the key chips inside. Apple continues to be one of its better regular customers, keeping the factories of TSMC filled.
With new plants ramping up in the U.S. and next-generation chips like N2 and A16 just around the corner, TSMC looks set to become even stronger. To not just hold on to its lead but extend it actively.
In the meantime, Samsung Foundry was one of the major competitors of TSMC. Not so good lately for the South Korean titan In fact, reports estimate their market share to have plummeted down towards 7.7%. Ouch
Why such a fall It appears to be a combination of two things then failure to deliver on a number of earlier commitments, on the obvious side, while on the other side, all the most sought-after chip orders fly straight into TSMC's hands. It puts them at a disadvantage when their competitor is boosting business.
Now, SMIC from China gets really interesting. Gaining ground. While Samsung slides downwards, SMIC is getting on with the direct opposite it has seen growth and now stands at about 6.0% market share. Now they're coming right for the heels of Samsung
SMIC appears to have received a lot of its new growth from within China. Within China, many companies, including Huawei, rely more and more on SMIC, especially after it has shown improvements on 7nm chip technology using DUV equipment. China is evidently upgrading its semiconductor industry to compete directly with the established players from the West.
The chip domain is definitely going through some tumultuous times. TSMC is holding the driver's wheel good and firm; Samsung Foundry has a lot to work on in reclaiming momentum; and SMIC has emerged as a seriously competing force. This landscape is poised for some very interesting developments.
