Yesterday, Taiwan media reported that TSMC was trying to coordinate the orders of Qualcomm, MediaTek, AMD, NVIDIA and other manufacturers, and first shifted some of them to Huawei. Then this afternoon, TSMC said to the outside world, "we will not disclose customer order information and be able to respond to market rumors." In fact, all parties have been watching the production capacity trend of semiconductor advanced process when the chip foundry has become the absolute mainstream. It is not hard to imagine that the competition between Samsung and TSMC in this field is bound to be further heated.
Screenshot of the report of Nikkei Asia review
Huawei is one of TSMC's main customers, and the new regulations of the US Department of Commerce have a great impact on TSMC. After the release of the new regulations in the United States, TSMC obtained a "buffer period" of four months. TSMC said it was market rumors that it would no longer accept Huawei's new order, but said it would not disclose any details of the order.
TSMC has announced that it will open a new plant in the United States to manufacture semiconductor wafers with a 5 nm process. The plant is scheduled to start in 2021 and start production in 2024, with a total expenditure of about $12 billion over the next decade. According to TSMC, their five-nanometer investment in Taiwan has reached $23 billion.
At the same time, Samsung announced on the 21st, will open a new production line in the city of Pingze, south of Seoul, starting from the second half of next year to mass production of 5 nano chips. Samsung had planned to take the lead in producing the chip this year on its production line in Huacheng, South Korea.
Reported that the two Samsung production lines will use the most advanced ultraviolet technology for chip manufacturing. Sources said the new production line will invest about $8.1 billion. Samsung has also pledged about $107.7 billion in chips and its contract manufacturing operations by 2030.
The article quoted analysts as saying the competition between Samsung and TSMC in the contract business would intensify.
"Samsung is definitely a strong competitor of TSMC," said a senior semiconductor industry analyst
However, he also pointed out that as an enterprise manufacturing electronic equipment, Samsung also needs to purchase key parts from competitors or potential competitors, "which has always been a problem for Samsung".
By contrast, TSMC only manufactures chips on a commission basis, and it has no business to compete with its customers. Analysts point out that this feature makes TSMC more popular with technology companies.
In the field of chip OEM competition between the two sides, according to the data provided by Market Research Institute Jibang consulting, TSMC accounts for half of the global chip OEM market share, while Samsung, though closely behind, only accounts for 15%. The two companies are competing fiercely in the field of high-tech chips, because the smaller the chip size, the higher the technology content and the higher the cost and difficulty. TSMC's production base in Taiwan will soon put into mass production of 5nm chips.
Analysts believe that Samsung's key issue is to have a stable customer portfolio, how to expand existing orders and win againAppleKey customers, such as Xilinx, are very important to Samsung.
Screenshot of SMIC international announcement
It is worth mentioning that on the same day that the US Department of Commerce announced the new rules, SMIC International announced a new round of capital increase and share expansion for SMIC south.
The south of SMIC is a 12 inch round crystal factory, which mainly meets the R & D and mass production of SMIC's process of 14nm and below.
Everbright Securities analysis pointed out that Huawei's mobile phone chip can compete with apple and Qualcomm, and can't do without TSMC's advanced manufacturing process. If TSMC really doesn't manufacture for Huawei in the future, Huawei's chip can only rely on core international and other manufacturers.
However, some analysis also points out that this is a rare opportunity for the mainland semiconductor industry chain for ten years. This is a good opportunity for semiconductor manufacturing companies like SMIC and other semiconductor equipment companies.