Q2 TSMC Holds 62% Foundry Market Share, SMIC Third
According to the latest report from Counterpoint Research, the global semiconductor foundry market has seen impressive growth, with revenues rising approximately 9% quarter-over-quarter and 23% year-over-year in Q2 2024. This surge is primarily attributed to the robust demand for artificial intelligence (AI) technologies. The leading players in the market are TSMC, Samsung, and SMIC.
The report highlights ongoing supply constraints in CoWoS (Chip-on-Wafer-on-Substrate) technologies, with potential for future capacity expansion, especially for CoWoS-L. While the recovery of non-AI semiconductor sectors, such as automotive and industrial applications, has been slower, urgent orders are emerging in areas like the Internet of Things (IoT) and consumer electronics. Notably, the semiconductor and foundry markets in China are rebounding faster than the global average. Chinese companies such as SMIC and Hua Hong have reported strong quarterly performances and positive forecasts due to earlier inventory adjustments by domestic fabless companies.
In terms of market share, TSMC remains the leader with a commanding 62% share, an increase of 4 percentage points from the previous year. The company's strong Q2 2024 performance, driven by sustained demand for AI accelerators, has led TSMC to slightly surpass revenue expectations. Consequently, TSMC has revised its annual revenue growth forecast from the lower 20% range to the mid-20% range. The company anticipates that the supply-demand balance for AI accelerators will continue to be tight through late 2025 or early 2026 and plans to double its CoWoS capacity by 2025 to meet this demand.
Samsung holds a 13% market share for Q2, reflecting a 1 percentage point increase year-over-year. The company’s revenue growth is attributed to inventory buildup and restocking for smartphones, allowing it to maintain its second-place position. Samsung remains focused on acquiring advanced node clients in mobile and AI/HPC sectors and expects its annual revenue growth to exceed the industry average.
SMIC maintains a 6% market share in Q2, consistent with both the previous quarter and year. The company remains in third place globally in the foundry market for the second consecutive quarter. SMIC’s strong quarterly performance and optimistic guidance for Q3 are driven by the ongoing recovery in Chinese demand, including applications for CIS, PMIC, IoT, TDDI, and LDDIC. The demand for 12-inch wafers is improving, and SMIC anticipates a rise in average selling prices (ASP) as inventory replenishment among Chinese fabless companies expands. The company maintains a cautiously optimistic outlook on its annual revenue growth, expecting healthy increases in utilization rates moving forward.
