Three semiconductor manufacturers have each steadily accounted for 4% to 9% of global revenue in this decade.
- GlobalFoundries (GFS +0.30%): The multinational contract chipmaker has seen its share of global semiconductor manufacturing revenue decline from 8% to 4%. It has foundries in Singapore, Germany, and the United States and is a Trust Foundry for the U.S. federal government. GlobalFoundries was created as a spinoff of AMD in 2009 when that company announced plans to go fabless a year prior.
- United Microelectronics (UMC +2.41%), or UMC: UMC’s share of global chipmaking revenue has fallen from 9% to 5%. The Taiwanese company was founded in 1980, before TSMC, but has since been eclipsed by it. It operates fabs in Taiwan, China, Singapore, and Japan.
- SMIC: Semiconductor Manufacturing International Corporation is the largest semiconductor manufacturer in China. Its share of global revenue has held steady at 6% despite its sales to the United States being steadily hamstrung by tightening U.S. export controls. SMIC has been a major recipient of funds from the Chinese government and has major Chinese corporations as important customers.
A handful of other chipmakers account for roughly 10% of global semiconductor manufacturing revenue, including Intel (INTC +2.27%). Once a cutting-edge semiconductor innovator and manufacturer, the American company has struggled for more than a decade and was on the verge of scaling back its manufacturing in the U.S. That prompted the Trump administration to take a 10% stake in Intel out of concern that advanced chip manufacturing would entirely leave the United States, leaving the country reliant solely on foreign firms for semiconductors necessary for national security and technological innovation.
Why semiconductor manufacturing revenue matters for investors
The data is clear: TSMC has a strong grip on semiconductor manufacturing in the most profitable segments. The data shows that market share remains consolidated with TSMC, and other competitors are struggling to create any disruption.
For investors, concentration of revenue means concentration of opportunity. TSMC’s lead is significant enough to offer some certainty, but fortunes can change quickly in the semiconductor space, especially as the big players get ready to roll out 2nm chips.