Counterpoint’s latest report on the global foundry market share for the fourth quarter of 2023 reveals that TSMC maintained its leading position, securing a 61% market share driven by robust demand in AI and the replenishment of smartphone stocks.

TSMC fully utilized its 5nm capacity, reaching 100%, primarily due to the high demand for AI GPUs from Nvidia. Additionally, the growth of Apple’s iPhone 15 contributed significantly to TSMC’s leading position in the 3nm node segment. These factors propelled revenue from sub-7nm nodes to approximately 70% of TSMC’s total revenue for the quarter, underscoring the company’s technological prowess.

According to Counterpoint analyst Adam Chang, the demand for AI is anticipated to remain robust in 2024, TSMC stands to benefit significantly from both the AI trend and the resurgence in logic semiconductor demand.

TSMC and Samsung were the only two firms to experience an increase in market share compared to the previous quarter. TSMC saw a 2% rise, while Samsung Foundry maintained its position as the second-largest player, increasing its market share from 13% to 14% thanks to the restocking of smartphones and promising initial pre-orders for the Samsung S24 series AI smartphones.