According to Korean media reports on July 16, Samsung Electronics’ semiconductor department revenue in the second quarter of 2024 may surpass TSMC for the first time in the past two years. This is the seventh consecutive year since Samsung gave up the world’s largest semiconductor revenue throne in the third quarter of 2022. After falling behind in the quarter, TSMC has regained this position, representing a major shift in semiconductor competition.
BusinessKorea reported that the global economic slowdown has led to a freeze in demand for IT products and a sluggish memory market, causing Samsung’s performance to decline sharply from the second half of 2022. However, the memory market will begin to recover in the second half of 2023, driven by production cuts, price rebounds and surge in demand for AI chips, which will have a positive impact on Samsung’s semiconductor revenue.
In the first quarter of 2024, Samsung Electronics’ Device Solutions (DS) division’s operating profit was 1.91 trillion won (approximately US$1.41 billion), the first profit in five quarters. TSMC still maintains the lead with a market share of 61.7%, while Samsung only has 11%. TSMC’s revenue in the second quarter of 2024 was NT$673.51 billion, approximately KRW 28.5 trillion, a 32% increase from the same period in 2023.
Samsung’s profit forecast for the second quarter is operating profit of 10.4 trillion won, an increase of 23.31% from the same period last year, reaching 74 trillion won. Although the semiconductor business revenue has not been announced, the market estimates that Samsung’s DS (semiconductor) division’s second-quarter revenue will be about 27 trillion to 28 trillion won. South Korea’s BNK Securities predicts at least 27 trillion won, and Hanwha Investment Securities predicts as high as 28.8 trillion won.
If Samsung confirms that the DS division’s revenue exceeds 28.5 trillion won after announcing its second-quarter results at the end of the month, it will exceed TSMC’s revenue, which means that Samsung’s revenue will exceed TSMC’s for the first time after the third quarter of 2022, and it will have the opportunity to regain the global semiconductor revenue leadership.
The booming development of artificial intelligence has driven a surge in demand for high-performance, high-capacity semiconductors, affecting market dynamics.The semiconductor industry continues to develop, and competition between Samsung and TSMC remains the focus, reflecting broader trends and changes in the global landscape.
Post time: Jul-31-2024
