In the third quarter of 2023, TSMC's market share reached an astonishing 59%, and it is in an absolute leading position in the semiconductor industry. This achievement has made foreign media admire, saying that it is the "overall situation" of wafer foundry. TSMC's market value continues to rise, mainly due to the two major engines, namely the increase in N3 process capacity and the growth in demand for smartphones. The successful application of the N3 process enables TSMC to meet the growing market demand for high-performance, low-power chips. At the same time, the demand for smartphones and other fields has also provided strong support for the increase of its market share.
It is worth mentioning that TSMC has been expanding its global semiconductor market share over the past few quarters. And in the third quarter of 2023, its performance is even more impressive. This not only proves TSMC's technological strength in the field of semiconductor manufacturing, but also sets the tone for the development trajectory of the quarter. Compared with other foundry companies, TSMC has a leading market share, injecting new vitality into its dominant position in the industrial chain. This also verifies the importance of TSMC's continuous promotion of technological innovation.
Compared with TSMC's strength, Samsung ranks second in the global semiconductor market, with a market share of 13%. This shows Samsung's rise in the global semiconductor market and has a profound impact on the industry landscape. As TSMC's main competitor, Samsung's market share has grown steadily, setting a new milestone for its position in the global semiconductor industry.
The rise of Samsung foundry is not only reflected in the growth of market share, but also in its technological innovation and strategic cooperation. For example, Samsung partnered with the Dutch company ASML to form the "Semiconductor Alliance", which highlights the strong support of South Korea** and companies for the local semiconductor industry. Through the in-depth cooperation with ASML, Samsung aims to make greater breakthroughs in the field of semiconductor manufacturing, especially in the introduction of EUV equipment, laying the foundation for future process technology competition. This partnership will not only benefit Samsung's market share, but also have a positive impact on the development of the global semiconductor industry.
In addition, Samsung is also focusing on R&D and investment in advanced manufacturing processes. Through the important agreement signed with ASML, Samsung will introduce a large number of advanced equipment within 5 years to provide strong support for the mass production of the 2nm process. This move shows Samsung's determination to compete in the future semiconductor process, and it also further intensifies the competition with TSMC. Technological innovation is also key to Samsung's rise to the top of semiconductor giants. Its use of GAAFET technology is in stark contrast to TSMC's FinFET technology, demonstrating the diversity of competitive strategies and technology paths between different companies. This differentiated technology selection has led to a more diversified global semiconductor market and a richer product choice for consumers.
In general, TSMC occupies an absolute dominant position in the wafer foundry market, and its leading position in technology strength and market share cannot be ignored. Samsung, as TSMC's main competitor, is gradually moving towards a situation where TSMC is going hand in hand with TSMC through technological innovation and strategic cooperation. The competition between the two companies will further drive the global semiconductor industry, accelerate the advancement of process technologies, and provide consumers with more advanced and diverse product options.
However, the competition in the semiconductor industry is a continuous process, and the competition for market share and technological innovation require long-term efforts and investment. For TSMC and Samsung, maintaining technology leadership and market share growth is a top priority. Only by continuously improving its own strength and constantly meeting market demand can it be invincible in the fiercely competitive semiconductor industry. This also provides an opportunity for other companies to learn and continuously improve their competitiveness through technological innovation and market expansion to succeed in this new digital era.