
Samsung Electronics’ semiconductor division remains behind Taiwan’s TSMC in quarterly revenue, as booming demand for artificial intelligence (AI) chips further cements the Taiwanese firm’s dominance in the global foundry sector. (Yonhap)
SEOUL, May 11 (Korea Bizwire) — Samsung Electronics’ semiconductor division continues to trail Taiwan’s TSMC in quarterly sales, as surging demand for artificial intelligence (AI) chips solidifies the Taiwanese chipmaker’s lead in the global foundry market.
According to industry data released on Sunday, Samsung’s Device Solutions (DS) division recorded 25.1 trillion won in revenue for the first quarter of 2025—a 17% decline from the previous quarter. The drop was largely attributed to a slowdown in exports and weak sales of high-bandwidth memory (HBM) used in AI semiconductors.
Samsung, a latecomer in the HBM market, has yet to penetrate Nvidia’s dominant AI chip supply chain—limiting the impact of its HBM sales. In contrast, TSMC, which manufactures nearly all of Nvidia’s AI chips, posted stellar results.
TSMC’s Q1 revenue soared 42% year-on-year to 839.35 billion New Taiwan dollars (approximately 37 trillion won), widening the sales gap with Samsung to more than 10 trillion won. Analysts attribute TSMC’s outperformance to robust AI demand in advanced economies and stockpiling ahead of U.S. tariff hikes.
“Market doubts around Samsung’s competitiveness in HBM haven’t been dispelled,” said Lee Seung-woo, head of research at Eugene Investment & Securities. “The steep decline in shipments and revenue confirms this concern.”
Samsung, once the global semiconductor leader after overtaking Intel in 2021, has seen its position erode as the memory market cooled in late 2022. After briefly reclaiming the top spot in Q2 2024, the AI boom propelled TSMC back into the lead in Q3—and the gap has widened ever since. Sales figures show the margin between the two companies expanded from 3 trillion won in Q3 2024 to over 10 trillion won in Q1 2025.
While Samsung remains a comprehensive semiconductor player with both memory and non-memory businesses, its direct competition with TSMC in the foundry sector makes the sales disparity symbolically significant.
Looking ahead, Samsung’s DS division is expected to rebound slightly in Q2 2025, with projected revenues between 28 and 30 trillion won. Analysts predict a modest recovery in legacy chip demand ahead of new U.S. tariffs. Meanwhile, TSMC forecasts Q2 sales of $28.4 to $29.2 billion (approximately 39 to 40 trillion won), maintaining a roughly 10 trillion won lead.
In a recent earnings call, TSMC Chairman Mark Liu projected full-year revenue growth in the “mid-20%” range in dollar terms, driven by sustained strength in AI-related demand.
The widening gap underscores the urgency for Samsung to sharpen its competitive edge in next-generation chip technologies if it is to challenge TSMC’s commanding lead in the AI era.
Kevin Lee (kevinlee@koreabizwire.com)