Taiwan Semiconductor Manufacturing (NYSE: TSM) is the undisputed leader of the semiconductor foundry industry. The company's market share in terms of revenue reached 59% in the first quarter of 2023, according to Counterpoint Research, dwarfing all competitors. Second-place Samsung (NYSEMKT: SSNLF) managed a market share of just 13%, and that includes internal revenue.
TSMC has been able to pull so far ahead partly because of the lead it built up in manufacturing technology. The company's 5nm process is its current workhorse, generating 31% of total revenue in Q1 2023. Apple has reportedly booked the initial run of TSMC's 3nm process for its upcoming iPhone and Mac processors, which could give the company a serious edge in performance and efficiency.
For companies like Apple that need the absolute best manufacturing technology at an immense scale, TSMC is the only game in town. "To be honest, Samsung Electronics' foundry technology lags behind TSMC," said Samsung executive Dr. Kye Hyun Kyung earlier this year.
Source Fool.com