Faced with the unprecedented chip fever, the lines of Taiwanese companies are overloaded.
Follow Business Korea, the entire production lines of TSMC are overloaded, “flooded” in the order of chip casting poured in every day. Because of this congestion, rival Samsung is the beneficiary. Apple has already bid for half of the 5nm chip production line, so many chipmakers plan to shift orders from TSMC to Samsung.
Currently, TSMC controls 54% of the global chip casting market, 3 times higher than Samsung, which accounts for only 17%. These are also the only two companies with less than 10nm process chip casting lines. The pressure on the Taiwanese leader is not small and the fact shows that they are helpless against the needs of technology companies.
Samsung benefits when TSMC is overloaded (photo: Samsung)
Compared with Samsung, TSMC has priority to order chip outsourcing thanks to its philosophy: “do not compete with your own customers”. The company defines itself as a “pureplay” firm that only focuses on a certain field. Although it has been diligently outsourcing for many years, it has no intention of launching its own chip line on the market.
Samsung, on the other hand, has chip design units and operates independently from the foundry, competing with outsourcing customers. However, this advantage seems to be lost when TSMC is now unable to receive all orders. Companies wishing to produce chips can not wait anymore, with no choice but to entrust Samsung.
Samsung’s annual spending on chipmaking, however, is still behind TSMC, and the company’s productivity is arguably still not as good as its competitors. If it wants to expand its market share further, the Korean company needs to promote line expansion and optimize productivity, in order to catch up with TSMC. In the short term, business opportunities for them are enormous when the chip fever is “squeezing” the supply chain of the semiconductor industry. Demand is increasingly high.