Samsung’s foundry division is experiencing a challenging period due to difficulties with its 3nm and 2nm processes, which are resulting in low yield rates.

According to a report by TrendForce, Samsung’s market share has declined significantly by 8.1% from 9.1%, while TSMC’s market share has increased to 67.1% in Q4 2024, representing a 2.4% rise compared to Q3 2024. Following these two industry leaders, China’s SMIC has secured the position of third-largest foundry, holding a 5.5% market share.

An analysis of this data reveals that the gap between Samsung and TSMC has widened to 59 percentage points, up from 55.6 percentage points in Q3 2024. The top 10 foundry companies collectively experienced a 9.9% increase in revenue, reaching $38.48 billion in Q4 2024.

Notably, TSMC achieved substantial growth, with a 14.1% increase in revenue, reaching $26.85 billion in Q4. In contrast, Samsung’s foundry revenue declined by 1.4% to $3.26 billion. TSMC’s growth can be attributed to strong demand for AI servers, high-end smartphone application processors, and new PC platforms, which resulted in higher wafer shipments.

The decline in Samsung’s revenue is reportedly due to reduced orders from major clients, despite gaining new clients in the advanced semiconductor sector.

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