The semiconductor industry is one of the most competitive and rapidly evolving sectors in the world. Three major players dominate the foundry market: TSMC, Samsung, and Intel. Each company is pushing the limits of technology to manufacture the most advanced chips, which power everything from smartphones to AI supercomputers. But who is truly leading the foundry race? Let’s break it down using the latest numbers and explore what they mean for the future of chip manufacturing.
1. In Q3 2024, TSMC held a 64.9% share of the global semiconductor foundry market
TSMC has long been the dominant player in the foundry industry, and its 64.9% market share in Q3 2024 is a testament to its leadership. This means that nearly two-thirds of all semiconductor chips made by independent foundries come from TSMC.
Why is TSMC leading? It all comes down to its technological superiority and its ability to manufacture chips for industry giants like Apple, Nvidia, and AMD. While Samsung and Intel struggle with production challenges, TSMC continues to refine its processes, ensuring it delivers high-performance, energy-efficient chips at scale.
For businesses relying on semiconductor supply, TSMC remains the safest bet. If you’re a tech company or investor, keeping a close eye on TSMC’s production capacity and new node developments will give you insights into the broader tech ecosystem’s health.
2. During the same period, Samsung’s market share was 9.3%
Despite being a technological powerhouse, Samsung is struggling to gain ground in the foundry market, holding only 9.3% in Q3 2024. While it has a solid consumer electronics business, its foundry division is trailing far behind TSMC.
Samsung’s main challenge has been yield issues with its advanced nodes. When chip manufacturers switch to newer, smaller processes, they often encounter defects that lower the number of usable chips produced per wafer. Samsung has faced more difficulties in this area compared to TSMC, leading customers to hesitate in committing large orders.
For Samsung to gain market share, it must focus on improving its yield rates and attracting more clients beyond its internal needs. Until then, TSMC remains the go-to choice for most high-end chip customers.
3. Intel’s foundry services did not rank in the top ten in Q3 2024
Intel has historically been a leader in semiconductor technology, but its foundry business is struggling. The fact that it did not even rank in the top ten in Q3 2024 highlights its ongoing difficulties in catching up with TSMC and Samsung.
Intel’s main problem has been execution. While it has strong chip designs, it has consistently fallen behind in manufacturing. Delays in transitioning to advanced nodes and issues with production scalability have hurt its ability to compete.
Intel’s future success will depend on how quickly it can resolve these issues. It has ambitious plans for its 18A (1.8nm) process, which could give it an edge. However, until it proves it can deliver at scale, Intel’s foundry business will remain a secondary player.
4. TSMC’s revenue in Q3 2024 was $23.53 billion, a 13% increase from the previous quarter
A 13% revenue increase quarter-over-quarter shows that TSMC is not only maintaining dominance but also growing aggressively. The demand for its cutting-edge chips is increasing, particularly in AI applications.
This growth is a result of TSMC’s ability to secure high-value customers like Apple, AMD, and Nvidia. As AI, data centers, and high-performance computing continue to expand, TSMC is well-positioned to capture even more market share.
For businesses and investors, this means that TSMC remains a strong indicator of the overall semiconductor industry’s health. If TSMC continues to post strong revenues, it suggests that demand for high-end chips is only growing.
5. Samsung’s foundry revenue decreased by 12.4% in Q3 2024
Samsung’s 12.4% decline in revenue is concerning, as it indicates that the company is losing ground to competitors. While TSMC is seeing growth, Samsung is struggling to attract major customers outside of its internal needs.
One of the biggest reasons for this decline is that many chip designers prefer TSMC’s manufacturing processes due to better reliability. Companies like Qualcomm and Nvidia have been hesitant to fully commit to Samsung’s foundry services, opting for TSMC instead.
For Samsung to reverse this trend, it must focus on improving customer confidence by delivering higher yields and better power efficiency in its chips. Until then, it will continue to play catch-up.
6. TSMC’s 3nm process reached full capacity in 2024, driven by demand from Intel and Apple
The fact that TSMC’s 3nm process reached full capacity in 2024 is a clear indicator of its market leadership. Apple, which relies on TSMC for its iPhone and Mac chips, is a key customer driving demand for these advanced chips.
This is significant because 3nm chips offer better performance and power efficiency compared to 5nm or 7nm. TSMC’s ability to mass-produce 3nm chips puts it ahead of Samsung and Intel, which are still struggling with their own advanced nodes.
If you are a company that depends on cutting-edge chips, TSMC remains the best option. Their ability to deliver high-volume, high-performance chips makes them the preferred choice for industry leaders.
7. Intel’s 18A process node is expected to surpass TSMC’s offerings in performance and efficiency by 2025
Intel’s upcoming 18A process node is expected to be a game-changer. If Intel can deliver on its promises, this process could finally put it ahead of TSMC and Samsung.
The 18A node is expected to bring improvements in power efficiency and transistor density, which are critical for next-generation computing applications. However, Intel has a history of delays and manufacturing setbacks, so whether it can execute this plan remains to be seen.
For businesses looking at future chip investments, keeping an eye on Intel’s execution of its 18A node will be critical. If successful, it could shift the power dynamics in the foundry market.
8. In 2024, TSMC’s market share was 62%, while Samsung held 10%
TSMC’s commanding 62% market share in 2024 compared to Samsung’s 10% shows just how dominant it has become. While Samsung has been trying to close the gap, it has struggled due to issues with its process technology.
Most major semiconductor customers prefer TSMC because of its consistency, high yields, and ability to scale production quickly. Samsung, despite its efforts, has not yet reached the same level of trust among top-tier clients.
For any business dependent on semiconductors, TSMC’s dominance means that they will likely remain the leading supplier for the foreseeable future. However, any disruptions at TSMC could have significant ripple effects across the industry.
9. TSMC’s 2nm process is scheduled for risk production at the end of 2024 and mass production in 2025
TSMC has consistently led in advanced semiconductor manufacturing, and its 2nm process is another step forward. Risk production at the end of 2024 means that TSMC will begin testing its 2nm technology with a limited number of customers.
Mass production in 2025 will bring these chips to a wider market, likely powering next-generation smartphones, AI chips, and data centers.
This advancement is significant because 2nm chips will be more power-efficient and allow for greater processing power in a smaller footprint. This could enable more advanced AI applications, better battery life for devices, and improved performance for cloud computing.
If you’re in the tech industry, keeping track of TSMC’s 2nm progress is crucial. Companies that require cutting-edge chips should start engaging with TSMC early to secure production capacity. ‘
Delays or issues in this transition could also impact the supply chain for many industries, so having alternative plans is essential.
10. Samsung plans to start mass production of its 2nm process in 2025
Samsung is following closely behind TSMC with its own 2nm process, expected to begin mass production in 2025. However, given Samsung’s history of struggling with yield rates and efficiency in previous nodes, there are concerns about how competitive its 2nm process will be.
One of Samsung’s key strategies is leveraging its expertise in memory chips to create a more integrated product offering. By combining high-performance logic chips with its industry-leading memory technology, Samsung could provide unique solutions for AI and high-performance computing.
For businesses considering Samsung’s foundry services, it’s important to closely monitor its progress in 2nm production. If Samsung can deliver a competitive product with high yields, it could start attracting more high-profile customers away from TSMC.
11. Intel’s 20A (2nm) process is slated for volume production in 2024
Intel is taking an aggressive approach with its 20A (equivalent to 2nm) process, which is expected to enter volume production in 2024. This puts it ahead of both TSMC and Samsung in terms of timeline, but execution will be key.
Intel’s biggest challenge has always been manufacturing reliability. While it has ambitious plans, delays in execution could impact its ability to compete. However, if Intel successfully launches its 20A process on time and with strong yields, it could become a major player in the foundry business once again.
If you’re in the semiconductor industry, keeping an eye on Intel’s 20A rollout is critical. If successful, Intel could start attracting customers that would have otherwise gone to TSMC or Samsung.
12. TSMC’s revenue in 2024 increased by nearly 34%, totaling approximately $88 billion
TSMC’s rapid revenue growth shows the increasing demand for advanced semiconductor manufacturing. With more companies requiring cutting-edge chips for AI, cloud computing, and mobile devices, TSMC is in an excellent position to capitalize on this growth.
This revenue increase also signals confidence in TSMC’s production capabilities. Businesses relying on TSMC’s chips should anticipate strong demand and potential bottlenecks in production. Planning early and securing production capacity is essential to avoiding supply chain disruptions.
13. Samsung’s foundry market share decreased from 16% in 2019 to 10% in 2024
Samsung’s declining market share in the foundry business highlights its struggles to compete with TSMC. The loss of customers and slower adoption of its latest process nodes have led to this decline.
To regain market share, Samsung must focus on improving manufacturing reliability and yield rates. This means investing more in research and development, as well as ensuring that its 3nm and 2nm processes meet customer expectations.
For businesses looking for alternative foundry services, Samsung’s struggles suggest that caution is needed. Until Samsung demonstrates significant improvements, companies may be better off relying on TSMC or other foundries for their most advanced chips.
14. TSMC’s market share increased from 51% in 2019 to 64% in 2024
TSMC’s rise from 51% to 64% market share in just five years shows how dominant it has become in the foundry space. This growth is largely due to its consistent execution, advanced process technology, and ability to meet the needs of top-tier customers.
For businesses in the semiconductor supply chain, this means that TSMC will likely remain the most reliable foundry for the foreseeable future. Companies that need cutting-edge chips should continue prioritizing TSMC as their primary manufacturing partner.
15. In Q3 2024, TSMC’s market share was 64%, with Samsung at 12%
TSMC continues to dominate the foundry market, with Samsung trailing far behind. While Samsung has made efforts to catch up, it still lacks the customer confidence and manufacturing consistency that TSMC offers.
For investors and tech companies, this means that TSMC remains the strongest player in the foundry business. Any significant changes in its market share will likely have a ripple effect across the entire tech industry.
16. Intel’s foundry business revenue increased by 63% in Q4 2023, reaching $291 million
Intel’s foundry business is growing, but it still has a long way to go before it can challenge TSMC and Samsung. A 63% increase in revenue is a positive sign, but Intel’s overall foundry revenue is still relatively small compared to its competitors.
If Intel continues to improve its manufacturing capabilities and attract more customers, it could become a more significant player in the foundry industry. However, execution will be key.
17. TSMC’s 3nm process began risk production in 2021 and volume production in 2022
TSMC’s early move into 3nm production has given it a strong advantage in the market. By starting risk production in 2021 and mass production in 2022, TSMC was able to meet demand from major customers like Apple and Nvidia.
For businesses looking to use 3nm chips, TSMC remains the best option. Its early start and high yields make it the most reliable choice for companies needing cutting-edge technology.
18. Samsung’s 3nm process entered risk production in 2022 and began shipping in the same year
Samsung also started 3nm production in 2022, but it has faced challenges in scaling up its process. Yield issues and customer hesitancy have prevented it from gaining significant market share in 3nm production.
For customers considering Samsung’s 3nm chips, it’s important to evaluate their performance and reliability before committing to large orders. Until Samsung can improve its manufacturing consistency, TSMC remains the preferred choice for most companies.
19. Intel’s 3nm process started product manufacturing in the first half of 2024, with shipping expected in the second half
Intel’s 3nm process marks a significant step in its foundry ambitions. While it started manufacturing in early 2024, the real test will be in its ability to ship at scale in the latter half of the year. This node is critical for Intel’s future as it aims to compete directly with TSMC and Samsung in the contract manufacturing business.
Intel has invested heavily in new manufacturing techniques, but execution remains the biggest challenge. Companies interested in Intel’s foundry services should closely monitor early adopters’ feedback before committing significant production to Intel’s 3nm process.
20. TSMC’s 2nm process is expected to offer a 10–15% performance increase or 20–30% power reduction compared to its N3E process
TSMC’s 2nm process will bring significant efficiency and performance improvements, making it a crucial advancement for industries relying on cutting-edge chips. These improvements will enable longer battery life for mobile devices, more efficient AI processing, and better overall computing performance.
Tech companies developing next-generation products should begin early collaboration with TSMC to ensure they can take advantage of this process as soon as it becomes available. Ensuring supply chain readiness and securing production slots early will be key to leveraging these advancements.
21. Samsung’s 2nm process will utilize MBCFET (Multi-Bridge Channel FET) technology
Samsung’s decision to use MBCFET technology in its 2nm process differentiates it from TSMC and Intel. MBCFET allows for better power efficiency and performance scaling, making it a promising innovation in semiconductor technology.
However, Samsung must prove its ability to mass-produce these chips reliably. If it succeeds, it could attract customers who are looking for alternatives to TSMC’s and Intel’s 2nm offerings.
Businesses considering Samsung’s foundry services should closely analyze initial yield rates and production stability before making long-term commitments.
22. Intel’s 20A process will introduce RibbonFET transistors and PowerVia backside power delivery
Intel’s 20A process is a crucial milestone because it introduces RibbonFET transistors and PowerVia, two key innovations that could give Intel a competitive edge.
RibbonFET is Intel’s version of Gate-All-Around (GAA) transistors, which improve power efficiency and transistor density. PowerVia allows power delivery from the backside of the chip, reducing congestion and improving performance.
If Intel successfully implements these technologies at scale, it could gain a significant foothold in the foundry market. However, execution and yield rates remain the biggest concerns.
Businesses looking at Intel’s foundry offerings should wait for performance benchmarks before making production commitments.
23. TSMC’s 3nm process (N3) has a transistor density of 197 million transistors per square millimeter
Transistor density is a key measure of semiconductor advancement, and TSMC’s 3nm process leads with 197 million transistors per square millimeter. Higher transistor density translates into better performance and efficiency, making TSMC’s 3nm chips highly sought after.
Companies building high-performance computing, AI, and mobile devices should prioritize TSMC’s 3nm process if they need the best balance of power and efficiency. However, competition from Intel’s 3nm and Samsung’s 3nm processes means that alternative options should also be evaluated.
24. Samsung’s 3nm process (3GAE) has a transistor density of 150 million transistors per square millimeter
While Samsung’s 3nm process is behind TSMC in transistor density, it still offers improvements over previous nodes. The key advantage of Samsung’s 3GAE (Gate-All-Around Early) process is its power efficiency, but lower transistor density could mean slightly lower performance.
Samsung’s foundry customers must consider whether efficiency gains outweigh performance trade-offs. For applications that prioritize battery life and low power consumption, Samsung’s 3nm process could be a good option, but high-performance applications may still lean towards TSMC.
25. Intel’s 3nm process has a transistor density of 190 million transistors per square millimeter
Intel’s 3nm process is competitive with TSMC in transistor density, putting it ahead of Samsung. This means Intel’s chips should perform similarly to TSMC’s in terms of power and efficiency.
However, transistor density alone does not determine success. Intel must also demonstrate strong yield rates and scalability before it can attract major foundry customers. Businesses considering Intel’s foundry should watch for early performance reviews and long-term production stability.
26. TSMC’s 3nm process began shipping for revenue in the first half of 2023
TSMC was the first to bring 3nm chips to market, giving it a head start over competitors. This early lead has allowed it to secure major customers like Apple, Nvidia, and AMD, reinforcing its position as the dominant foundry.
For companies seeking proven and reliable 3nm chips, TSMC remains the best choice. It has had time to refine its process and improve yields, ensuring a more stable supply of high-performance chips.
27. Samsung’s 3nm process started shipping in July 2022
Samsung was actually the first to begin shipping 3nm chips, but it struggled with lower yields and customer adoption. While early shipments were promising, many major customers still preferred TSMC due to its higher reliability.
For businesses looking at Samsung’s 3nm chips, it’s important to evaluate how much Samsung has improved its yield rates since the initial launch. If it has successfully addressed these issues, it could become a more viable alternative to TSMC.
28. Intel’s 3nm process is expected to ship for revenue in the second half of 2024
Intel’s 3nm chips are expected to reach the market later in 2024, putting it behind both TSMC and Samsung. However, if Intel can deliver competitive performance with strong yields, it could still become a key player in the foundry business.
Businesses interested in Intel’s 3nm process should monitor early adopters’ experiences before making major production commitments. The key factors to watch are power efficiency, performance consistency, and availability.
29. TSMC’s 2nm process will feature backside power delivery
TSMC’s decision to implement backside power delivery in its 2nm process is a major innovation. This technology improves power efficiency by reducing resistance and increasing performance density.
For businesses that need the most advanced chips, this feature could be a significant advantage. However, as with any new technology, real-world results will determine its actual impact. Companies should engage early with TSMC to secure production slots.
30. Intel’s 18A process is scheduled for 2025, aiming to regain process leadership
Intel’s 18A process represents its biggest push to regain leadership in semiconductor manufacturing. If successful, it could bring Intel back to the forefront of chip technology, competing directly with TSMC and Samsung.
However, Intel’s history of manufacturing delays makes this a high-risk, high-reward situation. Businesses considering Intel’s 18A process should prepare contingency plans in case of delays or lower-than-expected yields.
wrapping it up
The battle for foundry supremacy between TSMC, Samsung, and Intel is intensifying as each company pushes the boundaries of semiconductor manufacturing. While TSMC continues to lead with strong market dominance and advanced nodes, Samsung and Intel are aggressively investing in next-generation technologies to close the gap.
Businesses and investors must stay informed about these developments to make strategic decisions. The coming years will determine whether Intel can make a comeback, whether Samsung can resolve its yield issues, and if TSMC can maintain its leadership amidst growing competition.
