Samsung Foundry Holds No. 2 Market Share in Q1... Securities Analysis Released

Samsung Electronics emerged as an alternative for Big Tech companies while maintaining its No. 2 position in the foundry market despite TSMC's dominance. In a report on the 10th, Yuanta Securities researcher Kwon Myung-joon revealed that TSMC's market share in the first quarter was 72.3%, while Samsung Electronics stood at 6.5%.

TSMC has notified major clients such as Apple and AMD of plans to raise wafer supply prices for 3-nanometer, 5-nanometer, and 7-nanometer processes by 5 to 10%, citing insufficient production capacity. Big Tech firms find themselves in a situation where they must accept price hikes if they rely on orders placed with TSMC. Analyst Kwon argued that TSMC's market share exceeding 70% puts Big Tech at a disadvantage, adding that supply chain diversification is necessary to resolve the prolonged supply shortage. He diagnosed that an alternative supplier must be capable of advanced process production and secure stable yields and production capacity.

Global Big Tech companies are reviewing Samsung Electronics' foundry as an alternative to TSMC. Google is considering a plan to assign the production of memory input/output dies, which connect to HBM, to Samsung Electronics while contracting the main processor to TSMC. Meta's next-generation AI accelerator, MTIA 3rd generation, is expected to be produced at Samsung Electronics' foundry, and Entropic is also forecast to entrust AI chip production to Samsung Electronics.

On the 7th, Samsung Electronics Chairman Lee Jae-yong attended the Allen & Company Sun Valley Conference in Sun Valley, Idaho, raising expectations for additional orders. Samsung Electronics is set to secure a local production base with the scheduled operation of its Taylor, Texas factory in 2027. Yuanta Securities researcher Kwon Myung-joon evaluated that securing production bases in the U.S. will lead to acquiring Big Tech clients.