TSMC-Samsung foundry market share increased… Breaking the 30% Gap “Not easy”

Input 2020.12.23 15:54 | Revision 2020.12.23 16:00

TSMC’s market share in 4Q is 55.6% and Samsung Electronics is 16.4% 39.2%P 差
The gap has widened since the close to 29% P in the first quarter of last year.
Microprocessing market growth expected… “TSMC·Samsung Electronics will benefit”

Samsung Electronics, which is desperate to advance in foundries (consigned production) for the world’s No. 1 system semiconductor, is hardly able to close the gap with TSMC, the No. 1 in this field. At one time, the gap between the two companies’ market share narrowed to 29 percentage points, but it widened more than 39% in the fourth quarter of this year, and the gap again opened up.

According to the market research firm Trend Force on the 23rd, the market share (based on sales) of the global foundry market in the fourth quarter of this year is expected to be 55.6% for TSMC and 16.4% for second place Samsung Electronics. The difference in market share is 39.2%, which is more than 36.5% in the previous quarter. In the second quarter, TSMC 51.5% and Samsung Electronics 18.8%, showing a difference of 32.7%. In the second half of the year, TSMC has struck down Samsung Electronics and is solidifying its solo system.

Samsung Electronics narrowed its share with TSMC in the first quarter of 2019. At the time, there was a 29% point difference with TSMC 49.2% and Samsung Electronics 19.1%. The 4Q market share gap of 39.2 percentage points (estimated) is the largest gap in the past two years.

In terms of sales growth, Samsung Electronics is ahead of TSMC. Trend Force predicted Samsung Electronics’ foundry sales in the fourth quarter of 3,715 billion dollars (about 4,1184 billion won), up 25% from the same quarter last year. TSMC is expected to increase by 21% compared to the previous year to $12.55 billion (approximately 13,9159 billion won) in the fourth quarter.

The total sales of the top ten foundries in the fourth quarter were forecast to increase by 18% in the same period of the previous year to $21.7 billion (about KRW 24,566 billion). Taiwan’s UMC (6.9%) ranked third in terms of sales, US Global Foundries (6.6%) ranked fourth, and China SMIC (4.3%) ranked fifth.

The industry expects foundries to continue to boom next year. In particular, growth is expected in the microprocessing field of less than 10 nanometers, which only TSMC and Samsung Electronics can use.

Trend Force said, “TSMC is expected to increase sales of 7nm and 5nm for 5G and HPC” and said, “Demand will continue even in older generation processes of 10nm or higher.” In addition, Samsung Electronics said, “To meet the growing demand for smartphone SoC and HPC chipset, and to accelerate the introduction of extreme ultraviolet (EUV), we will further expand production of products based on the 5-nano process.” “The increase in advanced packaging capacity will lead to an increase in future performance.”

However, TSMC is faster than Samsung Electronics in securing EUV equipment that is essential for microprocessing. For this reason, there is a prospect that the market share will not change significantly next year. According to Taiwan’s Digi Times, as of the end of this year, TSMC has 40 units and Samsung Electronics has 18 EUV equipment. Next year, TSMC will have 30 units and Samsung Electronics will secure 10 units.

Nevertheless, as TSMC cannot digest all microprocessing, it is also expected to have a water drop effect for Samsung Electronics. “It is difficult for TSMC to meet all demands under 7nm,” said No Geun-chang, a researcher at Hyundai Motor Securities.

Doh Hyun-woo, a researcher at NH Investment & Securities, said, “From next year, Samsung Electronics’ foundry growth will begin in earnest.”