Samsung closes hole with TSMC in foundry marketplace proportion

A Samsung worker puts a wafer within the corporate’s cleanroom

South Korea’s Samsung Electronics Co has narrowed its marketplace proportion hole with foundry chief Taiwan Semiconductor Production Co (TSMC), reporting an outstanding quarterly income acquire.

Samsung’s second-quarter marketplace proportion within the foundry or contract chipmaking phase rose to 11.7% from 9.9% within the first quarter, consistent with Taiwan-based marketplace tracker Trendforce.

Main foundry chief TSMC’s marketplace proportion declined from 60.2% to 56.4%.

TrendForce noticed a captivating alternate within the electronics panorama in the second one quarter: Dwindling inventories for TV elements, in addition to a rising cellular restore marketplace, fueled TDDI call for — a transfer that boosted pressing orders within the provide chain.

It mentioned last-minute orders acted as a important lifeline, using second-quarter capability usage and income expansion for the semiconductor foundry.

TDDI, quick for Contact and Show Driving force Integration, is a era that integrates contact and show drivers, basically utilized in LCD display screen motive force IC chips.

Alternatively, call for for key shopper merchandise similar to smartphones, PCs and pc notebooks remained gradual, pushed via a decline in the usage of pricey, state of the art production processes, whilst inventories in historically sturdy sectors — automobile, business controls and servers — advanced. Mentioned.

(Graphics via Sunny Park)

Those tendencies have ended in persisted contraction for the sector’s best 10 semiconductor foundries, which noticed their mixed income decline 1.1% sequentially in the second one quarter to $26.2 billion.

Susceptible call for hits TSMC

TSMC reported second-quarter income of $15.66 billion, down 6.4% from the primary quarter, pushed via reduced income from the 4-nanometer and 5nm sectors.

Alternatively, consistent with Trendforce, with the most recent manufacturing cycle of the iPhone as a powerful tailwind, the foundry chief expects to look an building up in call for for comparable elements within the 3rd quarter, leading to a possible income leap.

Samsung’s foundry trade soared to an all-time excessive in the second one quarter with spectacular income of $3.23 billion — a powerful 17.3% leap on a quarterly foundation.

Alternatively, within the 3rd quarter, the Korean chipmaker can be hit via a gradual world economic system, which is able to cut back call for for Android smartphones, PCs and laptops. Because of this, Samsung’s 8-inch fab usage charge will decline, it mentioned.

TSMC is the sector’s biggest foundry corporate

comfortable seasonal call for

Trendforce expects seasonal call for in the second one part of the yr to be softer than in earlier years.

Nonetheless, expected orders for top class mainstream chips — similar to software processors and modems — in addition to peripheral ICs are set to push up capability usage charges for Apple Inc’s companions, it mentioned.

As well as, an building up in orders for high-performance computing AI chips is anticipated to boost up high-value production processes.

TrendForce estimates that the income of the highest 10 world semiconductor foundries is more likely to rebound within the 3rd quarter, with a steady building up thereafter.

Samsung is the sector’s best reminiscence chip maker, however within the contract production trade, it’s moment most effective to TSMC with unmarried or low double-digit marketplace proportion.

Samsung has mentioned it goals to extend the selection of its foundry consumers fivefold via 2027 in comparison to 2019.

The corporate plans to noticeably building up its foundry capability at its primary Pyeongtaek plant this yr and start operations at its Taylor, Texas plant via the tip of 2024, to triple the corporate’s world contract chip production capability via 2027 in comparison to 2022. will also be multiplied.

write to Jeong-soo Hwang at hjs@hankyung.com
In-soo Nam edited this text.

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