Numbers Don't Lie: Samsung Foundry's Gap with TSMC is Huge

The post Numbers Don't Lie: Samsung Foundry's Gap with TSMC is Huge appeared first on Android Headlines.

May 12, 2025 - 18:56

TSMC is the world’s largest semiconductor manufacturer. But it isn’t the only company in the world that produces chipsets. There’s Intel, and there’s Samsung. In terms of competitiveness, Samsung is probably a lot closer to TSMC than Intel, but even then, the gap between both companies is huge.

Samsung-TSMC gap is huge

According to the latest figures, the gap between the revenue of Samsung and TSMC is standing at $7 billion. That’s a lot of money, and one that we doubt Samsung can bridge anytime soon. Samsung has seen a slight increase in earnings for Q1 2025. The company’s semiconductor division jumped by 9%. That’s a good sign, but unfortunately, it’s a 17% decline over the same quarter last year.

Compared to Samsung, TSMC’s reported Q1 2025 earnings stand at $26.4 billion. This is actually an increase of 42% compared to the same period in 2024. Looking at the figures, the gap between TSMC and Samsung is $7 billion.

Over the years, Samsung and TSMC have been competing against each other for business in their foundries. For a brief moment, Samsung looked like it could pull ahead with its 3nm and 2nm processes. However, poor yields allowed TSMC to overtake the company.

That said, recent reports suggest that Samsung is back on track. In fact, Qualcomm, which relies heavily on TSMC, could use Samsung’s 2nm process for its next-gen Snapdragon chips.

Tariffs could be Samsung’s way in

Normally, we’d be hesitant to think Samsung could eventually catch up to TSMC. However, the US tariffs have changed the rules of the game slightly. Companies like TSMC and Samsung typically operate in various countries such as China, Taiwan, Vietnam, and so on. But now with the US tariffs coming into play, both companies have an opportunity to bring manufacturing stateside to reduce their overall costs.

If Samsung can establish its production lines faster than TSMC, it could give them an edge. We’re not sure how much tariffs the Trump administration plans on placing on semiconductors, but it is obvious that if there are tariffs, TSMC and Samsung will be passing those costs down to their customers.

If Samsung can get its manufacturing up and running in the US, those costs could be lower, potentially encouraging more companies to use its services. Last we heard, Samsung is already planning “massive” US facilities to try and work around the tariffs. TSMC is also making similar investments to the tune of $100 billion.

The post Numbers Don't Lie: Samsung Foundry's Gap with TSMC is Huge appeared first on Android Headlines.