The global semiconductor industry has been facing numerous challenges lately, leading to rapid changes in the chip market. According to foreign tech media outlet Wccftech, while TSMC continues to hold its position as the leader in wafer manufacturing, Samsung's foundry division is struggling with declining market share, as China's SMIC is quickly catching up to this Korean giant. The report suggests that Samsung's market share may soon be surpassed by SMIC.

TSMC has maintained its dominant position in the chip sector largely due to its rapid adoption of advanced process technologies, making it the preferred partner for major clients like NVIDIA, Apple, and AMD. In contrast, competitors have lagged in innovation, failing to quickly develop new processes while the existing nodes face technical challenges.

According to the latest report from technology market research firm TrendForce, TSMC is projected to lead the wafer foundry market with a 67.6% market share in Q1 2025, followed by Samsung at 7.7% and SMIC in third at 6%.

The report highlights that Samsung's foundry market share is disappointing, having declined by 0.4% from the previous quarter; conversely, TSMC holds a robust 67.6% market share, bolstered by strong AI demand, with NVIDIA being one of its key driving forces and Apple maintaining its role as a long-term critical customer.

Furthermore, TSMC's development momentum is currently unstoppable, particularly with the smooth advancement of its new factory in the U.S. and a focus on next-generation process technologies like N2 and A16, which could drive TSMC's revenues to new heights.

Notably, Samsung, once seen as TSMC's main competitor, is now facing a downturn in market share primarily because past projects have not been delivered on time, diverting almost all market demand to TSMC. The report also mentions that SMIC achieved a 6% market share in Q1 this year, growing by 0.5% from the previous quarter, with key demand coming from domestic Chinese companies like Huawei. Additionally, SMIC has made progress in 7nm process technology and DUV exposure technology, which is strengthening China's semiconductor industry amid the intensifying U.S.-China tech war.