Samsung closes the gap with TSMC in the global chip market

According to market analysis firm TrendForce, the market share of chip production South Korea increased 1.1 percentage points, to 18.3% between October and December 2021. Meanwhile, TSMC (Taiwan), which dominates the global chip market in Taiwan, decreased its market share by 1% to 52.1%.

Samsung’s chip business grew 15.3% QoQ while TSMC’s growth over the same period was 5.8%.

A TrendForce report released on March 15 said that Samsung was the only contract chipmaker among the industry’s top five to increase its market share year-on-year in the fourth quarter of 2021.

TrendForce believes that Samsung’s growth is due to “the gradual completion of new advanced 5/4nm chip capacity and mass production of new flagship products from major customer Qualcomm”. However, TrendForce added, slower growth of advanced process capabilities is expected to erode Samsung’s overall bottom line.

During a conference call following its fourth-quarter earnings results at the end of January, Samsung said its chip business posted record-high revenue for the quarter, without providing details. However, Samsung said its profits fell slightly from the third quarter “due to an increase in costs associated with enhancing advanced process nodes”.

Overall, global chip sales from the top 10 chip companies in the world totaled $29.55 billion in the three months ended December, up 8.3% from the third quarter, data from TrendForce adds. 2021.

Illustration. (Source: Bloomberg).

TrendForce forecasts that the chip industry will continue to grow in the first quarter of this year. However, growth in the first quarter will slow slightly from the previous quarter due to fewer working days due to the extended Lunar New Year holiday in the Mainland China region and the annual maintenance work of some companies. chip company.

Market observers say that competition in the chip business is heating up in the context of a global shortage of semiconductors. This led to the crippling of the production of cars and consumer appliances.

Reportedly, Samsung is preparing to build a new chip factory in Taylor, Texas, to expand its business and increase chip production. Construction will begin in the first quarter of 2022. Mass production is expected to begin in the second half of 2024.

Intel acquired Israeli chipmaker Tower Semiconductor for $5.4 billion last month. The American chipmaker is building chip factories in Arizona and Ohio. Meanwhile, TSMC is also building a factory in Arizona and is said to be considering building more factories in the US.

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