Amid increasing efforts by the U.S., Europe, and Japan to reduce reliance on China, TSMC secured a 64% market share in Q3 2024, driven by AI demand and its cutting-edge 5nm and 3nm processes. Samsung follows with 12%, and SMIC ranks third with 6%. TSMC’s upcoming 2nm production in 2025 is poised to reinforce its leadership, with projected margins exceeding 59% due to price hikes on advanced nodes. AI and smartphone sales, fueled by Nvidia GPUs and Apple products, remain key demand drivers.

My Take

The key question is whether rivals like Intel and Samsung can close the gap in advanced node production. While anything below 7nm is critical, 2nm represents a decisive inflection point where TSMC has already demonstrated leadership. TSMC’s leadership at 2nm is evident in its pioneering adoption of gate-all-around transistor technology, robust investment in new fabs, and strong customer partnerships with innovators like Apple and Nvidia. As TSMC advances toward 2nm, the challenges for competitors intensify. With little evidence of Samsung or Intel matching these capabilities, the window to compete is narrowing.

#Semiconductors #TSMC #AIChips #TechLeadership #USManufacturing #SupplyChain #InvestingInTech

Link to article:

https://www.benzinga.com/media/25/01/42981814/apple-and-nvidia-supplier-taiwan-semiconductor-leads-semiconductor-market-with-64-share#google_vignette

Credit: Benzinga

This post reflects my own thoughts and analysis, whether informed by media reports, personal insights, or professional experience. While enhanced with AI assistance, it has been thoroughly reviewed and edited to ensure clarity and relevance.