The semiconductor industry continues to see rapid advancements, with leading foundries TSMC and Samsung unveiling significant updates in their operations and strategies. These developments not only reflect their technological prowess but also hint at the increasingly competitive landscape of the global wafer foundry market.
TSMC's Record-Setting Financial Performance
On January 16, 2025, TSMC reported record-breaking revenues for Q4 2024, reaching NT$868.4 billion, marking a 38.8% year-over-year increase and a 14.3% rise quarter-over-quarter. In USD terms, revenues stood at $268.8 billion, with a gross margin of 59.0% and an operating profit margin of 49.0%. This stellar performance was driven by surging demand for high-performance computing (HPC) and advanced process technologies.
Revenue Breakdown: HPC contributed 53% of total revenue, a significant leap from last year’s 43%. Smartphones remained a key contributor at 35%, albeit with a slight decline in share.
Process Technology:
3nm technology accounted for 26% of Q4 sales, showcasing its potential as a future growth driver.
5nm nodes contributed 34%, continuing to anchor TSMC’s revenue.
Collectively, 7nm and more advanced technologies generated 74% of the quarter’s revenue.
Looking forward, TSMC projects Q1 2025 revenues to fall between $250 billion and $258 billion due to seasonal smartphone demand fluctuations. However, sustained AI-related growth is expected to offset these impacts. Capital expenditures for 2025 are projected at an all-time high of $38–42 billion, highlighting TSMC’s commitment to expanding capacity and advancing technology.
Samsung’s Competitive Moves in the U.S.
Meanwhile, Samsung Electronics is progressing steadily with its semiconductor plant in Taylor, Texas, which is expected to begin mass-producing chips by 2026. This facility will focus on 2nm and 3nm chips, utilizing Gate-All-Around (GAA) technology, and aims to directly challenge TSMC in advanced node production.
Investment and Capacity:
Samsung's Taylor plant is a cornerstone of its 2030 Vision, aiming to become the global leader in semiconductors.
The facility’s completion and operational readiness are expected to position Samsung strongly in the race for AI-driven and HPC chip demand.
Technology Rivalry:
While Samsung is implementing GAA technology for 2nm and 3nm production, TSMC plans to deploy EUV lithography for 3nm nodes and adopt GAA technology at 2nm.
Expanding Global Capacity
Both TSMC and Samsung are aggressively scaling their global manufacturing presence:
TSMC in Arizona:
The first Arizona fab will commence 4nm production in early 2025, while the second fab is set to produce 2nm chips by 2028.
A third fab, announced in April 2024 with an investment of $65 billion, is expected to be operational by 2030, utilizing 2nm or more advanced nodes.
Samsung in Texas:
Samsung’s Taylor facility is strategically positioned to enhance its U.S. operations, aligning with its vision to lead the global semiconductor market by 2030.
Competitive Outlook
According to TrendForce, TSMC dominated the global foundry market in Q3 2024 with a 64.9% market share, while Samsung held the second spot at 9.3%. As both companies ramp up their advanced node production, the foundry market is set for heightened competition.
With significant investments in advanced process technologies, both TSMC and Samsung aim to solidify their leadership while meeting the growing demand for AI, HPC, and mobile computing. The global foundry market’s evolution will be shaped by these technological innovations and capacity expansions, driving further growth in the semiconductor industry.
