According to the latest report from research firm Counterpoint, SMIC ranked third in global foundry revenue in the first quarter of 2024, behind TSMC and Samsung. The company occupies the third place with a market share of about 6% and expects revenue to rebound with double-digit growth as demand improves in the second quarter of 2024. In addition, SMIC's revenue in the first quarter of 2024 reached $1.75 billion, up 19.7% year-over-year and 4.3% quarter-on-quarter, which is also the first time that SMIC has entered the top three in the world.
In the fierce competition in the global semiconductor industry, Chinese mainland's SMIC has successfully stood out in the global chip foundry market with its growing market share and technological innovation. SMIC's rise has been supported by strong demand in the domestic market. Despite the uncertainty of the international market and the sanctions imposed by the U.S. government, SMIC has achieved significant growth through continuous technological innovation and market strategy adjustment. In the first quarter of 2024, SMIC rose to third place in the global chip foundry sales ranking, with a market share of 6%, second only to TSMC's 62% and Samsung's 13%.
Figure: SMIC first time ranks the third
SMIC's growth was driven by several key factors. First of all, the company actively optimized its product portfolio and improved capacity utilization, especially in order acquisition in the fields of smartphones, PCs and consumer electronics. Second, SMIC has accelerated the development of its technology platform to meet the needs of mainstream application scenarios such as consumer electronics, automotive-grade chips, IoT, and display drivers. In addition, the company's continued investment in the 12-inch wafer production line also provides a solid foundation for its performance growth.
In the face of the complexity of the international situation and the volatility of industry cycles, SMIC has adopted a series of strategies to meet the challenges. The company has consolidated its leading position in the domestic market by strengthening cooperation with domestic customers. At the same time, SMIC is also actively exploring the international market to attract more overseas customers by providing high-quality products and services.
The domestic chip industry recovered in early 2023 and achieved significant growth. SMIC took advantage of this opportunity to increase revenue by receiving a large number of domestic orders. In 2023, SMIC ranks fifth with a 5.2% share of the global chip foundry market, TSMC holds the industry leader with a 62% market share, and Samsung ranks second with a 13% market share.
With the gradual recovery of the global chip market demand and the promotion of new technologies such as AI, 5G and the Internet of Things, SMIC is expected to further consolidate and enhance its position in the global chip foundry market. The company will continue to increase R&D investment and promote technological innovation to meet the changing market demand.
