Counterpoint: Taiwan Semiconductor's leading position in AI and advanced processes further expands
Counterpoint Research pointed out that TSMC's dominant position in the semiconductor foundry sector has further expanded, with third-quarter revenue reaching $33.1 billion, reflecting strong momentum in the 3nm process and high capacity utilization in the 4/5nm processes. Continued orders from clients such as Apple, NVIDIA, and AMD drove this growth. Although Samsung and Intel lag behind TSMC in market share, they are making progress. Looking ahead, Samsung's advanced node prospects will depend on market demand
The Zhitong Finance APP noted that Counterpoint Research stated that Taiwan Semiconductor (TSM.US) has further expanded its dominance in the semiconductor foundry sector, as evidenced by its recently announced third-quarter financial performance, with revenue reaching $33.1 billion.
Counterpoint Research analysis pointed out: "This achievement reflects the strong momentum of the 3-nanometer process and the sustained high capacity utilization of the 4/5-nanometer processes, supported by ongoing orders from artificial intelligence GPU and high-performance computing customers, as well as demand from high-end smartphone platforms."
Analysts indicated that Apple is the main driver behind the increase in TSMC's 3-nanometer production, while NVIDIA and AMD continue to drive high demand for 4-nanometer and 5-nanometer chips, keeping capacity consistently at full load. Hyperscale computing companies are also boosting demand for TSMC, including Google's TPU, Amazon AWS's Tranium chips, and Meta's MTIA accelerators.
Counterpoint noted that foundry competitors like Samsung and Intel still lag significantly behind TSMC in market share, but they are making some progress.
"In terms of commercialization timelines, Intel expects its foundry customers' wafer commitments to begin mass production in 2026, with major customers expected to ramp up production between 2026 and 2027," Counterpoint noted. "Intel has also adjusted its foundry strategy to be customer commitment-oriented rather than building speculative capacity. This shift ensures that capacity expansion is directly linked to confirmed demand."
Counterpoint also stated that Samsung's advanced process utilization and wafer consumption increased in the second quarter of 2025, and this trend is expected to continue for the remainder of this year. This is partly attributed to smartphone chips based on 2-nanometer technology.
"Looking ahead, the prospects for Samsung's advanced nodes will largely depend on the success of its 2-nanometer chips," Counterpoint stated. "In addition to its internal Samsung Exynos product line, the results of future collaborations with Tesla will be key factors in determining whether Samsung can attract more customers and secure additional orders in advanced process nodes."
