TSMC Widens Market Cap Gap with Samsung Electronics

The gap between TSMC and Samsung Electronics, the world's top two semiconductor companies in market capitalization, has widened over the past one year.

The market capitalization of Samsung Electronics increased 59.5 percent during the period while that of TSMC grew 96.3 percent.

TSMC's market capitalization was US$543,293 million on May 27, doubling from US$276,781 million a year ago. Samsung Electronics remained in second place with a market capitalization of US$425,420 million.

In the first quarter of 2021, Samsung Electronics' sales (19 trillion won) eclipsed that of TSMC (US$12.9 billion or 14.4 trillion won). However, TSMC's operating profit stood at US$5.36 billion (about six trillion won), nearly twice as high as Samsung Electronics' 3.37 trillion won. TSMC's share of the global foundry market stood at 54 percent in 2020, dwarfing Samsung Electronics’ 17 percent.

The corporate value of TSMC shot up following a global system semiconductor shortage that started in the second half of 2020. Stock market analysts expected the stock price of Samsung Electronics to reach 100,000 won per share soon as it topped 90,000 won at the beginning of this year. However, its stock price is hovering at around 80,000 won due to unfavorable factors such as the imprisonment of vice chairman Lee Jae-yong, the shutdown of the Austin foundry plant, and a sluggish performance of the company’s semiconductor division in the first quarter.

As a result, the market capitalization gap between TSMC and Samsung Electronics widened from US$10.09 billion in 2020 to US$117.9 billion. Two years ago, Samsung Electronics surpassed TSMC by more than US$10.7 billion in market capitalization.