TSMC’s unrivaled No. 1 chase…predicts the top 3 in the global foundry market
Domestic and foreign investments likely to accelerate within the year, such as Samsung Electronics and the expansion of its Austin plant in the U.S.
‘Semiconductor Dinosaur’ Intel announced its full-scale entry into the foundry (consignment production) business. Taiwan’s TSMC, which is the first in the world market share, and Samsung Electronics, the second largest in the world, are experiencing a sense of crisis.
As the semiconductor super cycle (boom) coincides with the semiconductor super cycle (boom), competition for share and investment in the foundry market of these three companies is expected to become more intense. In particular, Samsung Electronics is expected to pull the reinforcement of domestic and foreign investment, such as the expansion of its factory in Austin, USA.
[팻 겔싱어 인텔 CEO 사진=인텔 제공]
◆Intel Invests $20 Billion to Build Two Foundry Plants
Intel held a global live briefing online on the 23rd (local time) and announced the vision of’IDM 2.0′, which includes entering into a large-scale foundry business and becoming a new integrated semiconductor (IDM) company. Pat Gelsinger, who was an engineer who took office as CEO in February, professed to increase its global market share by winning the competition of’consignment production of semiconductors’ at the event, which is actually the official debut stage.
Gelsinger said, “We will invest 20 billion dollars (about 22.700 billion won) to build two new fabs in Arizona and enter the foundry market.” He also announced plans for additional expansion, saying, “We will announce plans to expand Intel’s capabilities in the United States, Europe, and other parts of the world within the year.”
Intel has been preparing for the foundry. It has already established’Intel Foundry Services’, a vertical and independent foundry division within the company, and has appointed Dr. Randir Thakur as president. Gelsinger said, “The global foundry market will grow to 100 billion dollars (about 113 trillion won) by 2025. Intel is the only company that has all of the software, semiconductors and platforms, packaging and manufacturing processes that customers can trust.” Confidence was revealed.
In particular, Intel has pledged to focus on the mobile application processor (AP) that TSMC and Samsung have been dissolving. Gelsinger said, “Intel Foundry Service will manufacture various chips such as mobile architecture ARM technology-based chips such as smartphones used in mobile devices, and x86 chips, which are their own architecture. ), Qualcomm, Apple, etc.”
View of Intel Ocotillo Fab [사진=인텔 제공]
◆Foundry’s Global Third Power System…Samsung Accelerates Investment in the US
Intel’s full-fledged entry into the foundry is expected to pose a significant threat to rivals TSMC and Samsung Electronics. In fact, with the addition of Intel, the global market has become a third wave. According to Trend Force, a market research firm, TSMC is expected to have 56% of the global market share in the first quarter of this year and 18% of Samsung Electronics.
In the industry, it is interpreted that Intel’s declaration of entry into the foundry is a result of concern that the company’s core semiconductor technology such as CPU will be leaked to other foundries. Until now, TSMC has adhered to the principle of “not competing with customers”, so it seems that Samsung Electronics is held in check.
In particular, it is noteworthy that the two fabs announced by Intel were concentrated in Arizona. Samsung Electronics is currently coordinating the construction of a plant in Austin and tax benefits with relevant government authorities, but if negotiations break down, one of the alternative candidates is Arizona. It is also interpreted that Intel has made a drastic investment plan, fearing that Samsung will also enter after TSMC in Arizona, the heart of its company.
Samsung is expected to accelerate bold investments with Intel’s entry into the foundry. It is expected to accelerate the expansion of fabs in Korea, including the already announced plant expansion in Austin. In the industry, as the Texas government and others are proactively considering tax benefits, it is expected that Samsung Electronics will make full-fledged investments within the second quarter.
Samsung Electronics Vice Chairman Kim Ki-nam, the head of DS division, also showed an ambitious appearance at a recent shareholders’ meeting, saying, “We are closely exploring areas that can strengthen the dominance of existing businesses or create synergy with existing businesses” related to meaningful investment plans within three years.
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