In the second quarter of this year, Samsung Electronics’ semiconductor division sales may have surpassed TSMC for the first time in nearly two years, marking a significant shift in the competitive landscape of the global semiconductor industry. This potential milestone comes after Samsung ceded its position as the world’s top semiconductor sales leader to TSMC in the third quarter of 2022, trailing the Taiwanese giant for seven consecutive quarters.

The downturn in the memory market, exacerbated by a global economic slowdown that froze demand for IT products, led to a sharp decline in Samsung’s performance from the second half of 2022. However, the memory market began to recover from the second half of last year, driven by production cuts, price rebounds, and a surge in demand for AI chips. This recovery has positively impacted Samsung Electronics’ semiconductor performance.

In the first quarter of this year, Samsung Electronics’ Device Solutions (DS) division achieved an operating profit of 1.91 trillion won (approximately $1.41 billion), returning to profitability after five quarters. Despite this, TSMC maintained a significant lead with a market share of 61.7% in the foundry sector, compared to Samsung’s 11%.

According to industry sources on July 14, TSMC, the world’s largest foundry (semiconductor contract manufacturing) company, recorded sales of 673.51 billion Taiwan dollars in the second quarter of this year, a 32% increase from the same period last year, equivalent to approximately 28.5 trillion Korean won.

Samsung Electronics posted an “earnings surprise” in the second quarter with an operating profit of 10.4 trillion won. Sales increased by 23.31% year-on-year to 74 trillion won. Samsung Electronics did not announce specific sales amount of semiconductors. However, the securities industry estimates the sales of Samsung’s DS (semiconductor) division to be in the range of 27 to 28 trillion won in the second quarter. BNK Investment & Securities stated, “Current forecasts for Samsung Electronics’ DS division sales in the second quarter range from a minimum of 27 trillion won.” Hanwha Investment & Securities added, “Current forecasts for Samsung Electronics’ DS division sales in the second quarter range to a maximum of 28.8 trillion won.”

If the confirmed second-quarter results for Samsung Electronics, to be released at the end of this month, show DS division sales exceeding 28.5 trillion won, it could surpass TSMC’s sales. This would mark the first time in eight quarters since the third quarter of 2022 that Samsung’s sales have overtaken TSMC, potentially reclaiming its position as the world’s top semiconductor sales leader.

The AI boom is driving a surge in demand for high-performance, high-capacity semiconductors such as high-bandwidth memory (HBM), further influencing market dynamics. As the semiconductor industry continues to evolve, the competition between Samsung and TSMC remains a focal point, reflecting broader trends and shifts within the global technology landscape.