New reports suggest TSMC’s market share is expected to exceed 70% in 2025
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Ever since the U.S. called for products to be manufactured on its soil and TSMC opened a new plant in Arizona, it has been seeing plenty of action. Almost every major player, including Qualcomm, Apple, AMD, Nvidia, MediaTek, and others, have flocked to TSMC for next-generation 2nm and 1.4nm chips.
While this decision to move manufacturing to American soil has taken its toll on plenty of companies, it appears that TSMC's market share is flourishing and will continue to do so by the look of it. That might also be part of the reason why TSMC plans to invest more in the U.S.
What is going on with TSMC?
There was a recent report by DigiTimes, which claimed that TSMC is maintaining foundry dominance. However, it was locked behind a paywall, and Jukan Choi on X gave us a snippet of that report.
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TSMC's Foundry 2.0 takes things to the next level by including advanced front-end processes, system integration, SoIC 3D stacking, and other services across the industry. The lithography tech of TSMC is already ahead of competitors like Intel and Samsung, as they struggle to catch up.
Even though Samsung has started mass-producing its Exynos 2600 processor, which features a 2nm process node, TSMC is still going strong, as it has plans to add three extra fabs to meet the orders. Historically, the wafers produced by TSMC have been of impeccable quality, which is understandable given the high demand for them.
That being said, according to the report, the production of its 3nm wafers has increased, which are priced at $20,000 each, while the 2nm wafers are priced slightly below $30,000. Besides that, the most anticipated 1.4nm wafer is said to have a price tag of $45,000 each, which isn't surprising given the cost of producing such cutting-edge tech.
Taking all of these factors into account, TSMC's market share is expected to go past 70% in 2025, which, once again, isn't unrealistic, and is expected to reach 75% in 2026. So, 75% of the entire chip industry will be controlled by TSMC, and having a single company hold a major sway over any aspect is never a good thing.
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