TSMC Beats Samsung With More Than 51% Share of the Global Foundry Market

tsmc lowers revenue guidance, apple shares take nosedive

Taiwan Semiconductor Manufacturing Company (TSMC) is seeing demand soar to new heights as the world transitions to 5G wireless technology. That’s according to the Nikkei Asian Review, which claims that Samsung’s chip-manufacturing unit is failing to keep up with the Taiwanese firm even after spending billions to increase capacity. According to a Japan-based supplier quoted by the publication, “demand from TSMC has not flagged and more staff are needed” to meet that demand.

TSMC is reportedly manufacturing 5nm chips for Apple’s next-gen iPhones at a factory in the southern Taiwanese city of Tainan. The company also makes chips for some of the biggest global tech companies like Apple, Huawei, Qualcomm, MediaTek and others. Overall, it has a 51.5% share of the global foundry market, followed by Samsung with a paltry 18.8%. GlobalFoundries, UMC and SMIC round out the top-five. However, they all have single-digit market-shares.

TSMC Beats Samsung With More Than 51% Share of the Global Foundry Market
Image Courtesy: Nikkei Asian Review

In an earnings call with investors earlier this year, TSMC CEO, C.C. Wei, announced that the company is rapidly ramping up its 5nm chip manufacturing. Wei also claimed that risk production for 3nm chips remains on track for 2021 despite the pandemic. Volume production of 3nm chips, however, is only set to commence in the second half of 2022. The company is also is reportedly working on a new 4nm architecture that will go into mass production in 2023.

While the good times are on at TSMC, new US restrictions on Huawei may affect the company’s business adversely in the coming months. The chip-maker has received a temporary waiver from the US government, allowing it to fulfill its existing order from the Chinese telecom giant, but it will be interesting to see how this plays out going forward.

SOURCE Nikkei Asian Review
comment Comments 0
Leave a Reply