Q3 Semiconductor Earnings: NVIDIA Tops, TSMC Leads Foundry

Counterpoint Research recently unveiled comprehensive data detailing the market dynamics of the global semiconductor and wafer fabrication sectors during the third quarter of 2023.

In the third quarter of 2023, Taiwan Semiconductor Manufacturing Company (TSMC) emerged as the dominant force in the global foundry industry, securing an impressive 59% market share. This achievement was fueled by the enhanced production capacity from the N3 technology and a surge in demand for smartphone replenishments. Samsung Foundry secured the second position with a substantial 13% market share, followed by United Microelectronics Corporation (UMC), GlobalFoundries, and Semiconductor Manufacturing International Corporation (SMIC).

Segmenting the market based on technology nodes, the 5/4nm category emerged as the primary segment, capturing 23% of the market share in Q3 2023. This dominance is attributed to robust demand, particularly from applications in artificial intelligence and iPhones. The 7/6nm segment maintained a steady market share, signaling early indications of recovery in smartphone market orders. Conversely, the 28/22nm segment faced challenges due to inventory adjustments in network applications, while the 65/55nm segment experienced a decline due to reduced demand in the automotive sector.

In terms of global semiconductor revenue, NVIDIA claimed the top position, driven by heightened demand for AI servers. NVIDIA is poised to maintain its leadership in semiconductor revenue performance in the forthcoming quarters. Intel secured the second position, propelled by a thriving data center business and increased revenue from PC orders.

Samsung maintained its third position, with sequential growth attributed to the ongoing recovery in its memory business. SK Hynix also benefitted from this trend, reporting a sequential increase in revenue.