Taiwan’s TSMC is further solidifying its dominance in the semiconductor foundry sector as demand for AI chips continues to surge. Renowned for its high yields and advanced packaging capabilities, TSMC is capturing an increasing share of orders. According to TrendForce, a market research firm, TSMC’s market share rose from 57.9% in the third quarter of last year to 61.7% in the first quarter of this year. In contrast, Samsung Electronics, the second-largest player, saw its market share dip from 12.4% to 11.0% over the same period, widening the gap between the two giants.
Competitors like Samsung Electronics, Intel, and Rapidus are stepping up efforts to close the gap with TSMC. Their strategies include rolling out cutting-edge processes (Samsung Electronics), adopting the latest equipment ahead of TSMC (Intel), and drastically cutting delivery times through full factory automation (Rapidus). These companies are essentially telling customers: “Choose us; we’re faster and more affordable than TSMC.”
Rapidus, a consortium of eight major Japanese companies, including Toyota and Kioxia, plans to fully automate its 2-nanometer semiconductor production line using robots and AI. This automation will span from the front-end processes of designing and manufacturing semiconductors to the back-end processes of packaging and testing. While front-end process automation is already common in semiconductor production, back-end processes still rely heavily on human labor. According to Nikkei Asia, Rapidus’s initiative aims to slash production times compared to competitors, with the goal of delivering in one-third of TSMC’s time. Although Rapidus will begin mass production of 2-nanometer chips two years later than TSMC, the company intends to compete by speeding up AI chip production. Rapidus plans to complete factory construction by October, introduce Extreme Ultraviolet Lithography (EUV) equipment by December, and start sample production next year, with full-scale mass production expected by 2027.
Samsung Electronics, the world’s second-largest foundry, is focusing on speed and low power consumption as its competitive advantages. Recently, Samsung has been promoting its AI semiconductor “turnkey” service, which streamlines the entire process from chip design to memory, foundry, and packaging, thereby speeding up delivery. Additionally, Samsung is advancing its low-power “Gate-All-Around (GAA)” technology and packaging techniques, which enhance power efficiency and performance by reducing current leakage. An industry insider noted, “With the recent AI boom, it’s crucial for AI model developers and data center operators to receive chips quickly, and Samsung is capitalizing on this demand.”
Meanwhile, Intel recently announced plans to introduce next-generation “High NA EUV” lithography equipment from Dutch company ASML at its Oregon plant, crucial for processes below 2 nanometers. Intel now has two High NA EUV machines, making it the only company to have introduced this technology into its fabs. High NA EUV improves light-gathering capabilities compared to traditional EUV, allowing for more precise semiconductor circuit etching. Despite recent challenges and large-scale restructuring, Intel is making significant investments in this equipment, which is about twice as expensive as existing machines, to strengthen its technological capabilities. Intel reported a cumulative loss of $5.3 billion in its foundry business during the first half of this year, but the company plans to use this equipment for full-scale production of 1.4-nanometer semiconductors by 2027, aiming to return to profitability.
