Samsung Electronics faces increasing challenges in the foundry market as TSMC explores a joint venture with Nvidia, AMD, and Broadcom to manage Intel’s semiconductor facilities.

If this partnership materializes, competition could intensify, further impacting Samsung, which is already losing market share.

Qualcomm was initially in discussions but has withdrawn.

As of Q4 2024, TSMC dominates with 67.1% of global foundry revenue, while Samsung’s share has fallen to 8.1%. Samsung reported an operating loss of over 2 trillion won (US$1.4 billion) in its foundry division.

With TSMC securing exclusive clients like Apple and Nvidia, Samsung struggles to compete, especially amid rising AI chip demand.

The proposed joint venture aligns with US efforts to strengthen Intel, with TSMC seen as a priority over Samsung for incentives.

While Samsung’s chip plant in Taylor, Texas, nears completion, attracting customers remains a major hurdle.

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