Global Chip Revenue Declines Amidst Tariff Concerns: TSMC Leads, Samsung Struggles
Global semiconductor revenue continues a downward trend amidst tariff fears, shrinking 5.4% to $36.4 billion in the first quarter, despite efforts by exporters to boost orders. TrendForce projects a challenging second quarter as tariff effects wane. Here’s how the major players in the industry are coping.
TSMC Stays on Top Despite Revenue Dip
TSMC maintained its leading position in the global semiconductor manufacturing market with a 67.6% share, slightly up from 67.1%. However, its revenue dropped 5% to $25.5 billion. The demand for AI components and urgent TV chip orders ahead of tariffs cushioned the fall.
Samsung Faces Challenges in Market Share
Samsung’s revenue fell 11.3% to $2.89 billion, reducing its share from 8.1% to 7.7%. U.S. export restrictions to China and limited participation in the Chinese smartphone market impacted its performance significantly.
SMIC and Others Capitalize on Tariff Anticipation
SMIC, China’s leading chip manufacturer, saw a 1.8% revenue rise to $2.2 billion, pushing its market share from 5.5% to 6%. The company benefited from Chinese subsidies and pre-tariff increase orders, despite lower chip prices.
SMIC, UMC, and GlobalFoundries: Navigating the Market
UMC, holding the fourth spot, experienced a 5.8% revenue decline to $1.76 billion, with steady market share at 4.7%. Meanwhile, GlobalFoundries, backed by UAE investors, saw a 13.9% revenue drop to $1.6 billion, with its market share slipping from 4.6% to 4.2% due to low demand and minimal participation in the Chinese smartphone sector.
Meanwhile, the Huahong Group, the second-largest in China, witnessed a modest revenue fall of 3% to $1.01 billion, largely due to price reductions. Vanguard and Nexchip, however, reported small growths of 1.7% and 2.6%, respectively. Israel’s Tower faced a 7.4% revenue decline, retaining 1% of the global market, while Taiwan’s PSMC closed the top ten list with a 1.8% revenue drop.
