The world’s largest semiconductor manufacturer TSMC and Samsung Foundry (Samsung’s semiconductor division) saw some decline in semiconductor revenues in the first quarter of 2023. The chips from the bands of TSMC and Samsung are used in every field from smartphones to automobiles. On the other hand, it seems that Samsung felt the most this decline experienced by all companies in the sector.Samsung crashes, TSMC increases market share
According to market research firm TrendForce data, Samsung Foundry’s market share fell to 12.4 percent in the first quarter of 2023. In the previous quarter, Samsung Foundry’s market share was 15.8 percent. Meanwhile, TSMC increased its market share from 58.5 percent in the 4th quarter of 2022 to 60.1 percent in the 1st quarter of 2023.
On a revenue basis, Samsung generated $3.45 billion in revenue in the first quarter of 2023, but there is a massive 36.1 percent decline in revenues compared to the previous quarter. The firm’s revenue in the previous quarter was $5.39 billion; which means the company lost $2 billion in just one quarter. In the corresponding period, TSMC’s quarterly revenue was almost 5 times higher. TSMC’s revenue in Q1 of 2023 fell only 16.2 percent. Alongside Samsung, the semiconductor giant recorded revenue of $16.7 billion in Q1 of 2023 and $19.9 billion in Q4 of 2022.TrendForce says Samsung’s staggering 36.1% quarter-on-quarter revenue decline is due to lower utilization rates of the company’s 8-inch and 12-inch wafer capacities. It is also stated in the report that Samsung will increase its revenues with the introduction of the 3nm process.
In the first quarter of 2023, TSMC was the clear market leader, followed by Samsung Foundry and GlobalFoundries. Although Global Foundries increased its market share to 6.6 percent from 6.2 percent in the previous quarter, it experienced a 12.4 percent decrease in revenue compared to the previous quarter. In fact, Samsung took the biggest hit, with quarterly revenues falling for all top 10 foundries.
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