Samsung, Intel, and TSMC: The Global Semiconductor Triathlon... Who Will Win?

[Asia Economy Reporter Suyeon Woo] Among the top three global semiconductor companies, TSMC posted the best performance in the first quarter of this year. Intel, which accounted for patent litigation provisions, ranked second, while Samsung, which suffered losses from the suspension of operations at its Austin plant in the U.S., came in third.

According to industry sources on the 24th, Taiwan's foundry leader TSMC recorded an operating profit of 150.5 billion Taiwan dollars (5.9 trillion KRW) in the first quarter of this year, a 17% increase compared to the previous year. Intel, which had maintained the top position in the industry until last year, reported an operating profit of 3.73 billion dollars (4.1 trillion KRW), down more than 40% year-on-year. Samsung Electronics, whose finalized results have not yet been announced, is estimated to have an operating profit in the semiconductor division of around 3.5 trillion KRW, down from the previous year.

In terms of sales, integrated device manufacturers (IDMs) Intel and Samsung Electronics had the upper hand, but when comparing operating profits, which reflect actual profitability, it is noteworthy that TSMC showed rapid growth. For the first quarter, Intel's operating margin is estimated at 18.8%, Samsung's at around 19%, while TSMC's reaches a remarkable 41.5%.

Of course, Intel's figures include one-time costs related to patent litigation provisions, and Samsung Electronics reflects losses from the suspension of operations at its Austin plant, but the industry views it as significant that TSMC, which operates solely in the foundry business, surpassed IDMs Intel and Samsung.

In the second quarter, one-time costs will disappear, and with the substantial impact of the 'supercycle,' improvements in the performance of Intel and Samsung Electronics are expected. However, uncertainties due to the global semiconductor supply crisis still remain.

Pat Gelsinger, CEO of Intel, said during the first-quarter earnings announcement on the 22nd (local time), "The industry has recently been struggling with shortages in foundry production, substrates, and components," adding, "It is expected to take at least two years for the ecosystem to make sufficient investments to resolve these shortages."

This content was produced with the assistance of AI translation services.