Analyst: Samsung Electronics may seize some of TSMC's market share in the future

According to Taiwanese media reports, South Korean technology giant Samsung Electronics is now actively investing in expanding its foundry business. The company has stated that it will surpass TSMC to become the leader in the foundry industry by 2030. Analysts believe that although Samsung Electronics may not be able to achieve this goal in the short term, it is expected to seize some market share from TSMC.

Jim Handy, an analyst at Objective Analysis, said Samsung Electronics is like a slow-moving steamroller. Everyone knows exactly where it is going, and the only choice is to get out of the way. Now, the target of this steamroller is TSMC. It is expected that Samsung will be able to take some market share from TSMC, but the process will be very difficult and require a lot of investment.

Currently, Samsung Electronics ranks second in the foundry business, still behind TSMC. According to data from market research firm TrendForce, Samsung is expected to have a 17.4% market share in the global foundry market in the third quarter of this year, while TSMC, which ranks first, is expected to have a market share of 53.9%.

Jim Handy admitted that it would be difficult for Samsung to catch up with TSMC in a short period of time. He said that TSMC is a company with excellent operations, and its advanced process technology is profitable enough to compete with any company that produces through old process technology, while it still has enough funds to invest in future technology.

However, Jim Handy also said that Samsung has a relative advantage in fund raising because the company is a conglomerate that can invest through profits from other business units, such as smartphones and memory chip units, which means that Samsung's capital expenditure is expected to be higher than TSMC, and Samsung will also use this to seize TSMC's market share. As for when the goal can be achieved, Handy believes that it will mainly depend on how much money Samsung will invest.