TSMC dominates foundry market

TSMC solidified its position as a dominant player in the global pure-play foundry market, capturing a commanding 67.1 percent share in the fourth quarter of 2024, as reported by TrendForce. This marked a significant increase of 2.4 percentage points for TSMC, further extending its lead in a market that saw a sequential growth of 14.1 percent, reaching a total value of approximately US$40.1 billion during the period.

While TSMC strengthened its position, other major foundries such as Samsung and SMIC experienced a slight decline in market share, losing 1 and 0.5 percentage points, respectively. The shift in market dynamics was driven by the robust demand for advanced process nodes, particularly in segments such as AI servers, flagship smartphone application processors, and new PC platforms, which offset the slowdown in mature process demand.

One notable trend highlighted by TrendForce is the impact of US trade tariffs on the foundry sector. The imposition of tariffs has led to a surge in orders for products like TVs, personal computers, and notebooks that are destined for the US market. This development has influenced the overall demand and production landscape within the foundry industry.

Amidst these market dynamics, UMC managed to navigate challenges by proactively managing customer orders, thereby maintaining high capacity utilization and shipments above initial projections. This strategic approach helped UMC mitigate the effects of declining average selling prices (ASPs), resulting in a marginal 0.3% quarter-on-quarter revenue decrease to $1.87 billion, securing the fourth position in the global ranking.

GlobalFoundries, on the other hand, experienced an uptick in wafer shipments and sustained its fifth-place position in the market. Despite achieving a 5.2 percent quarter-on-quarter revenue growth to $1.83 billion, the company faced some headwinds due to slight ASP declines. Among the top ten foundries, Nexchip emerged as a standout performer, climbing to the ninth spot with a notable 3.7 percent quarter-on-quarter revenue growth to $344 million. Conversely, PSMC slipped to the tenth position, impacted by weakened demand for memory foundry and consumer-related chips.