The Foundry Race: TSMC’s Strategy vs. Samsung’s Challenges

Samsung faces steep challenges as TSMC maintains strong lead in the semiconductor foundry sector.

TSMC continues to dominate the global foundry market, outpacing Samsung by 50.8 percentage points in Q2 2024, thanks to its focus on advanced processes and a customer-first business model. With its roots in vertical specialization and strong U.S. client relationships, TSMC’s advantage is cemented by massive investments and advanced technologies like CoWoS (Chip-on-Wafer-on-Substrate). In contrast, Samsung struggles to keep pace due to internal complexities (slow decision-making, misaligned priorities, and resource conflicts), the rise of Chinese competitors like SMIC, and missed opportunities in high-value collaborations. To catch up, Samsung must address internal inefficiencies, prioritize advanced process innovation, and rebuild trust with key partners. This article was based on the book “Business Giant Samsung” by semiconductor journalist and industry expert Ron Lin.

My Take

Samsung’s survival depends on embracing focused specialization, such as Gate-All-Around technology, instead of maintaining its legacy processes. By streamlining leadership efforts and divesting non-core operations, Samsung can redirect resources toward advanced technologies and customer-centric innovation—a strategy that could position it as a stronger challenger to TSMC.

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Link to article:

https://biz.chosun.com/en/en-it/2025/01/25/UN5JNJOCMVE3PING76G3FGZ7JI/?outputType=amp

Credit: ChosunBiz

This post reflects my own thoughts and analysis, whether informed by media reports, personal insights, or professional experience. While enhanced with AI assistance, it has been thoroughly reviewed and edited to ensure clarity and relevance.