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TSMC left Samsung behind with 48% margin in Q1 2023

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Due to the global economic downturn, Samsung is facing a decline in its semiconductor business. The company has already trimmed down production and a new report suggests that the top 10 semiconductor fab’s sales volume shrunk by 18.6% from the previous quarter globally.

While the market share of Taiwan’s TSMC, the top player, exceeded 60%, Samsung Electronics’ share dropped to 12%, as per TrendForce analysis. The firm reported that the sales volume of the top 10 foundry operators in Q1 contracted by 18.6% from the previous quarter.

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This result stemmed from reduced demand due to a semiconductor industry downturn, as well as the impact of the off-season. TrendForce published an analysis report citing that sales also decreased as both the operating rates and shipment volumes of the top 10 companies declined.

TSMC-Samsung Q1 2023

The report further says that the gap between TSMC and Samsung widened further in Q1 2023. TSMC’s sales fell by 16.2% from the previous quarter to 16.735 billion, but its market share rose by 1.6% points to 60.1%.

Samsung Electronics, on the other hand, saw its sales plummet by 36.1% to US$3.446 billion, recording a market share of 12.4%, down by 3.4% points.

“TSMC’s operating rate for 7/6 nanometers and 5/4 nanometers processes fell by more than 20% due to weakened demand for laptops and smartphones. Samsung Electronics saw a decrease in Q1 sales due to a reduction in the operating rate of both 8-inch and 12-inch wafers,” TrendForce.

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