Samsung vs TSMC: Revenue, Profit and Business Model
Samsung reported ~$236.9B of revenue in FY2025 and ~$31.4B of net income. TSMC reported ~$121.9B of revenue in FY2025 and ~$54.3B of net income.
Latest financial snapshot
Financial summary
Samsung
Samsung's earnings follow the memory cycle. Revenue fell from ~$215 billion (KRW 302.2 trillion) in 2022 to ~$184 billion (KRW 258.9 trillion) in 2023 during a chip downturn, then recovered to ~$214 billion (KRW 300.9 trillion) in 2024 and ~$237 billion (KRW 333.6 trillion) in 2025, when net income reached about $31.5 billion (KRW 44.3 trillion). In 2026, AI server demand created a memory shortage. Q1 operating profit of ~$40.6 billion (KRW 57.2 trillion) exceeded the full-year 2025 total, and Q2 reached ~$63.5 billion (KRW 89.5 trillion) on ~$122 billion (KRW 171.5 trillion) revenue. Higher memory costs also squeezed Samsung's own devices: the MX and Networks unit lost ~$497 million (KRW 0.7 trillion) in Q2 2026 on ~$23.6 billion (KRW 33.2 trillion) revenue.
TSMC
TSMC's results are being driven by AI accelerators and high-performance computing. FY2025 revenue reached NT$3.81 trillion ($121.4 billion), with net income attributable to shareholders of NT$1.70 trillion ($54.1 billion). Growth sped up in 2026: Q2 2026 revenue was NT$1,270.38 billion ($40.20 billion), up 36.0% year over year, and net income was ~$22.6 billion (NT$706.56 billion), up 77.4%. Gross margin reached 67.7% and operating margin 60.3% in the quarter. Q2 non-operating income included ~$2.02 billion (NT$63.20 billion) of gains on Vanguard International Semiconductor (VIS) shares, so part of the profit jump was one-off. Q3 2026 results are scheduled for October 15, 2026.
Revenue and profit by year
Samsung
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | ~$236.9B | ~$31.4B | 13.3% | +10.9% | Source |
| FY2024 | ~$213.6B | ~$23.9B | 11.2% | +16.2% | Source |
| FY2023 | ~$183.8B | ~$10.3B | 5.6% | -14.3% | Source |
| FY2022 | ~$214.6B | ~$38.9B | 18.1% | +8.1% | Source |
| FY2021 | ~$198.5B | ~$27.9B | 14.0% | — | Source |
TSMC
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | ~$121.9B | ~$54.3B | 44.6% | +31.6% | Source |
| FY2024 | ~$92.6B | ~$37.1B | 40.0% | +33.9% | Source |
| FY2023 | ~$69.2B | ~$27.3B | 39.4% | -4.5% | Source |
| FY2022 | ~$72.4B | ~$31.8B | 43.9% | +42.6% | Source |
| FY2021 | ~$50.8B | ~$19B | 37.3% | +18.5% | Source |
| FY2020 | ~$42.9B | ~$16.3B | 38.1% | +25.2% | Source |
| FY2019 | ~$34.2B | ~$11.3B | 33.1% | +3.7% | Source |
| FY2018 | ~$33B | ~$11.6B | 35.2% | +5.5% | Source |
| FY2017 | ~$31.3B | ~$11B | 35.3% | +3.1% | Source |
| FY2016 | ~$30.3B | ~$10.6B | 35.0% | +12.4% | Source |
| FY2015 | ~$27B | ~$9.7B | 35.9% | — | Source |
Where the revenue comes from
Samsung
- Memory semiconductors
- Foundry and system LSI
- Galaxy smartphones and mobile devices
- Display panels
- TVs and appliances
- Network equipment
- Harman automotive and audio
TSMC
- Advanced Node Wafer Revenue (7nm and below)
Majority of wafer revenue
Revenue from manufacturing chips at 7nm, 5nm/4nm, 3nm and now 2nm process nodes for customers such as Apple, Nvidia, AMD, Qualcomm and MediaTek. These wafers carry the highest prices and margins in TSMC's portfolio, and AI accelerators plus flagship smartphone processors drive most of the demand. TSMC reports node mix quarterly in its management report.
- Mature and Specialty Node Revenue (16nm and above)
Minority of wafer revenue
Revenue from manufacturing at 16nm through 180nm process nodes, serving automotive, industrial, analog, power management, RF, and embedded memory markets. These processes are characterized by long lifecycles, stable demand, and lower per-wafer prices than advanced nodes, but also lower capital intensity due to depreciated equipment. Specialty processes include TSMC's high-voltage, embedded flash, BCD (Bipolar-CMOS-DMOS), and silicon photonics platforms. The automotive segment within specialty processes is growing as electric vehicles require substantially more semiconductor content per vehicle than conventional automobiles. TSMC's 28nm node remains the world's most widely deployed logic process.
- Advanced Packaging Services (CoWoS, SoIC, InFO)
Not separately disclosed
Revenue from TSMC's advanced packaging technologies, which physically integrate multiple chips into a single package with high-density interconnects. CoWoS (Chip on Wafer on Substrate) uses a silicon interposer to connect AI compute dies with HBM memory stacks. SoIC (System on Integrated Chips) enables face-to-face chip bonding for extreme density. InFO (Integrated Fan-Out) is used in Apple's A-series chips to reduce package thickness. This segment is growing significantly faster than wafer revenue as chiplet architectures become mainstream, and its revenue contribution is expected to increase materially through 2026 and 2027 as TSMC invests in dedicated packaging capacity.
- Mask Making and Reticle Services
Not separately disclosed
Revenue from photomask manufacturing, which produces the patterned optical templates used in chip lithography. TSMC manufactures its own photomasks internally for quality control and supply chain security reasons, and provides mask services to certain customers as part of prototype and low-volume manufacturing programs. This revenue stream is small in terms but important as a vertical integration element of the company's overall manufacturing capability. Mask technology, particularly for EUV processes, is an area of ongoing R&D investment as the complexity and cost of leading-edge reticles have increased with each process generation.
- Engineering Services and Technology Licensing
Not separately disclosed
Revenue from process engineering services, design enablement, and in limited cases, technology licensing. TSMC provides design support services to customers through its Open Innovation Platform ecosystem, which includes process design kits, standard cell libraries, IP blocks, and co-optimization programs. The company also generates a small amount of licensing income from intellectual property related to its process technologies, though TSMC is generally protective of its manufacturing IP and does not engage in broad licensing of its core process knowledge. This revenue stream is primarily strategic in nature, supporting customer design capability rather than generating material standalone income.
Business model and strategy
Samsung
How it makes money
Samsung earns money from two groups of businesses. Device Solutions (DS) makes and sells memory (DRAM, HBM, NAND), System LSI chips such as Exynos processors and ISOCELL image sensors, and contract foundry manufacturing.
Growth strategy
Samsung's growth plan centers on AI memory: ramping HBM4 for Nvidia and AMD accelerators, developing HBM4E, and adding DRAM capacity at Pyeongtaek. In foundry it is pursuing 2nm gate-all-around production and building its Taylor, Texas fab to win customers from TSMC. On the device side it relies on Galaxy AI features, foldables and premium TVs to defend share against Apple and Chinese brands.
Competitive advantage
Samsung's edge is manufacturing scale and breadth. It is the largest memory producer and one of only three major DRAM makers, alongside SK hynix and Micron. That lets it capture pricing upswings like the 2026 AI-driven shortage.
TSMC
How it makes money
TSMC is a pure-play foundry: customers send finished chip designs, and TSMC turns them into processed wafers and, more and more, packaged multi-chip modules. It earns revenue per wafer, with leading-edge nodes such as 3nm and 2nm commanding much higher prices than mature nodes, plus fees for advanced packaging (CoWoS, InFO, SoIC) and design-enablement services.
Growth strategy
TSMC's growth strategy is focused on leading-edge node execution, advanced packaging, AI and HPC capacity, global fab expansion, customer trust, and manufacturing yield leadership. AI demand is lifting high-performance computing revenue while overseas fabs in the United States, Japan, and Europe add resilience and political support.
Competitive advantage
TSMC's advantage comes from process technology leadership, manufacturing yield, customer trust, large capital scale, supplier depth, design ecosystem integration, and advanced packaging capacity.
Questions about Samsung vs TSMC
Which company has higher revenue — Samsung Electronics Co., Ltd. or Taiwan Semiconductor Manufacturing Company?
Samsung Electronics Co., Ltd. reported ~$236.9B (FY2025), while Taiwan Semiconductor Manufacturing Company reported ~$121.9B (FY2025). By last reported revenue, Samsung Electronics Co., Ltd. is the larger business, with Taiwan Semiconductor Manufacturing Company reporting a smaller revenue base.
What is the market cap of Samsung Electronics Co., Ltd. vs Taiwan Semiconductor Manufacturing Company?
Samsung Electronics Co., Ltd.'s market capitalisation stands at $1.33T, while Taiwan Semiconductor Manufacturing Company's is $2.01T. Taiwan Semiconductor Manufacturing Company carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Samsung Electronics Co., Ltd..
Which is more financially efficient — Samsung Electronics Co., Ltd. or Taiwan Semiconductor Manufacturing Company?
Samsung Electronics Co., Ltd. generates $914k / employee in revenue per employee, while Taiwan Semiconductor Manufacturing Company generates $1.35M / employee. Taiwan Semiconductor Manufacturing Company shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Samsung Electronics Co., Ltd. and Taiwan Semiconductor Manufacturing Company make money?
Samsung Electronics Co., Ltd. and Taiwan Semiconductor Manufacturing Company generate revenue in fundamentally different ways. Samsung Electronics Co., Ltd.: Samsung earns money from two groups of businesses. Taiwan Semiconductor Manufacturing Company: TSMC is a pure-play foundry: customers send finished chip designs, and TSMC turns them into processed wafers and, more and more, packaged multi-chip modules.
Which company is valued higher relative to revenue — Samsung Electronics Co., Ltd. or Taiwan Semiconductor Manufacturing Company?
On a price-to-sales (P/S) basis, Samsung Electronics Co., Ltd. trades at 5.6x P/S and Taiwan Semiconductor Manufacturing Company at 16.5x P/S. Taiwan Semiconductor Manufacturing Company commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Samsung Electronics Co., Ltd.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Samsung Electronics Co., Ltd. bigger than Taiwan Semiconductor Manufacturing Company?
By last reported revenue, Samsung Electronics Co., Ltd. (~$236.9B (FY2025)) is the larger company compared to Taiwan Semiconductor Manufacturing Company (~$121.9B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Samsung vs TSMC overview