Samsung Expected to Attain Fourth Position for Matured Nodes in 2021; TSMC Holding First Place Thanks to Rapid Chip Advancements
As Samsung continues to compete with TSMC when it comes to advanced manufacturing nodes, the Korean giant’s efforts will enable it to reach a ranking of number four. Unfortunately, despite reportedly making a jump from 5nm to 3nm chip development, Samsung is still out of the top-three semiconductor manufacturers in the world, but there’s a reason for that, as you’ll soon find out.
Samsung Is Focused More on Advanced Node Manufacturing but Aims to Invest Big to Become the Largest Semiconductor Entity
Fresh stats from Counterpoint Research show that TSMC maintains its lead in the semiconductor industry with a 28 percent market share. Those that thought Samsung would have secured second place are heavily mistaken, as the company has a measly 10 percent share in the same category. The remaining two players are UMC and SMIC, which is strange to see, but there’s a reason behind this.
Samsung ranks fourth place because it’s only focused on advanced nodes such as 10nm, 7nm, and 5nm, not legacy node production, like the remaining two companies. The company reportedly secured an $850 million deal with Qualcomm to mass produce 5nm chips, taking away a decent chunk of change from TSMC. However, it’s the 3nm node that should determine if Samsung has the resources and talent to catch up to its biggest rival in the semiconductor race, and it looks like we see some progress.
The Korean tech behemoth aims to invest $10 billion USD in a new facility in Austin, Texas, in hopes to take some of that market share away from TSMC. Samsung also aims to invest $115 billion USD by 2030 with its ambitions to provide cutting-edge chips to its clients.
Of course, it’s not like TSMC would be taking a break any time soon as far as its 3nm node is concerned. The manufacturer is said to have secured a $20 billion USD investment for its 3nm chip facility, with previous reports stating that Apple has already secured the first batch of shipments for a variety of products for this next-generation manufacturing process.
Do you think that by 2022, Samsung will come closer to TSMC’s market share with its advanced foundry business? Tell us down in the comments.
News Source: Counterpoint Research