Contract chip manufacturing is big business, and only a handful of players dominate the chip market. Samsung Electronics and the Taiwanese company TSMC are among these brands. Recently, the atmosphere of competition between these 2 producers has been very intense.
According to a new report, Samsung has now surpassed its Taiwanese rival TSMC in terms of the total number of advanced chips sold. The data shows that the number of high-end smartphone chips sold by Samsung during the first 3 months of 2022 was significantly higher than that of TSMC.
Synergy phenomenon helps Samsung to increase its market share
Data provided by the research institute Counterpoint Research shows that Samsung’s share of the advanced smartphone chip market (produced using the 5nm process and its more advanced samples) is equal to 60%, and TSMC’s share during the first 3 months of 2022 is equal to 40%. have been. This is a big improvement for Samsung compared to last year. Samsung’s share of the global advanced smartphone chip market during the first 3 months of 2021 was only 8.6%; While TSMC completely defeated its Korean competitor by acquiring a 91.4% share.
The significant increase in demand for Samsung’s advanced mobile chips is due to the impressive performance of the company’s mobile unit. In the first 3 months of 2022, Samsung’s mobile business managed to record sales of 74 million smartphones worldwide. Since many of Samsung’s recent high-end and mid-range smartphones use chips manufactured on the basis of the 5nm process (most of these chips are manufactured by Samsung Electronics); Therefore, this synergy within the group allows the Korean giant to significantly increase its share of the semiconductor market.
Also, Samsung witnessed an increase in the number of transfers of 4 nm chips. Qualcomm’s flagship chip called Snapdragon 8 generation 1 is manufactured using Samsung’s 4nm process. According to reports, this chip has been used in three quarters of the phones transferred from the Galaxy S22 series during the first 3 months of this year. According to predictions, with the increase in orders from Qualcomm for the production of 4nm chips by TSMC, this Taiwanese brand will once again become the largest producer of advanced smartphone chips.