Samsung slips further behind TSMC in chipmaking race.
$Taiwan Semiconductor (TSM.US)$ $SAMSUNG EL 144 (SSNGY.US)$ $Direxion Daily Semiconductor Bull 3x Shares ETF (SOXL.US)$
When Samsung Electronics declared that it would become the world’s top chipmaking foundry, it did so with the confidence that one might expect from South Korea’s largest company. However, three years later, top rival Taiwan Semiconductor Manufacturing Co has captured a larger market share, prompting Samsung to replace several executives.
When Samsung Electronics declared that it would become the world’s top chipmaking foundry, it did so with the confidence that one might expect from South Korea’s largest company. However, three years later, top rival Taiwan Semiconductor Manufacturing Co has captured a larger market share, prompting Samsung to replace several executives.
Samsung was not able to provide stable supplies of smartphone chips to Qualcomm, its largest client. Ultimately, Qualcomm expanded its outsourcing volume from TSMC last autumn, resulting in Samsung losing orders.
Meanwhile, TSMC had started mass producing 5-nm chips at approximately the same time as Samsung. TSMC also became the sole contract manufacturer for Apple’s central processing units.
Because the iPhone is the bestselling line of smartphones by volume, they require CPUs to be produced and shipped over short cycles. At this stage, it is extremely difficult for an operator other than TSMC to field the production equipment and technology to deliver on that front.
Due to the disparate outcomes concerning 5-nm chips, TSMC has greatly expanded its lead. In the first quarter, TSMC captured 53.6 per cent of the foundry market, according to Taiwanese analytics firm TrendForce. Samsung is a distant second at 16.3 per cent.
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