May 24, 2024 16:00:00

China's SMIC rises to third place in semiconductor manufacturing industry, research firm reports

Counterpoint Research has reported on the foundry (semiconductor manufacturing) industry for the first quarter of 2024. The industry share has remained stable over the past year, but in the first quarter of 2024, China's SMIC has overtaken America's GlobalFoundries and Taiwan's UMC to rise to third place.

AI Demand Stands Strong Amidst Seasonal Downturn and Slower Recovery for Global Foundry Industry in Q1 2024
https://www.counterpointresearch.com/insights/global-foundry-industry-in-q1-2024/

China's SMIC is now the world's third-largest chip foundry: Counterpoint

https://www.cnbc.com/2024/05/23/chinas-smic-is-now-worlds-third-largest-chip-foundry-counterpoint.html

Below is the 'Foundry Market Share Ranking from Q1 2023 to Q1 2024' shown by Counterpoint Research. Over the past year, Taiwan's TSMC has solidified its lead, followed by South Korea's Samsung , GlobalFoundries, UMC, SMIC, and China's Huahong . However, in Q1 2024, SMIC has overtaken GlobalFoundries and UMC, which were at the top of the list, to rise to third place. Samsung's figures are based on estimated figures extracted from sales to external customers in the foundry division .

According to a report from Counterpoint Research, SMIC's chips are used in areas such as automobiles, smartphones, computers and the Internet of Things, and a recovery in demand in China is likely to have boosted revenue and expanded market share.

The market share is shown in a bar graph below. In first place, TSMC has nearly 60% of the market, followed by Samsung in second place with just over 10%, and the manufacturers in third place and below all have less than 10% of the market share.

SMIC is expected to continue to perform well in the second quarter, but GlobalFoundries is also expected to increase its profits in the second quarter, so it is unclear whether SMIC will maintain its third place position.