Monday, October 3

Samsung already earns more than Intel selling chips, although in the semiconductor market TSMC is in charge

Semiconductor manufacturers are doing great. This industry has been in enviable health practically since it was born, but the galloping deficit of chips in which we have been immersed for almost two years is causing its coffers to be increasingly full. In fact, according to the consultant Gartner The semiconductor market has grown by 25.1% during 2021, reaching a total turnover of $583.5 billion. It’s not but nothing bad.

Chip producers know that they have sold everything they are capable of manufacturing in advance, so there is no commercial risk in this industry. At least not as we see in other markets. There are other types of risk, such as, for example, that linked to the need to maintain competitiveness by developing more advanced photolithographic processes. Putting this strategy into practice requires making large investments, but as things stand, the profitability of this effort is assured.

Currently this market is led with insulting clarity by the Taiwanese company TSMC. Its client portfolio includes Apple, NVIDIA, Qualcomm, and even Intel, among many other companies, which has made it the sixth company with the highest market value on the planet (exceeds 600 billion dollars). Its market share, as we can guess, is huge. In fact, according to Visual Capitalist monopolize nothing less than 54% thanks, to a large extent, to the comfortable position it holds due to its more advanced manufacturing nodes.

Samsung already earns more than Intel selling chips

Samsung’s share of the semiconductor market is much more modest than TSMC’s. Of course, the adjective ‘modest’ must be escorted with huge quotation marks. And it is to have under your lap 17% of the gigantic chip market it is a real luxury. This South Korean company is defending its position tooth and nail thanks to its most advanced manufacturing nodes, but what has allowed it to overtake Intel and enter more than it in 2021 by selling chips are your memories.

And it is that Samsung is one of the main manufacturers of memory chips on the planet. According to the newspaper Nikkei Asia last year the income of its subsidiary dedicated to the production of semiconductors increased by 31.6%, which allowed them to touch the $76 billion. The income of the Intel subsidiary specialized in the manufacture of chips, however, grew during 2021 in a much more timid way: only 0.5%. It is only a hypothesis, but its growth may have been moderated by the challenges that Intel is facing in the field of semiconductor production.

In any case, this company has long held a very strong position in the IC market, so despite growing only marginally over the past year, it has reaped revenue selling chips of no less than $73.1 billion. It has barely entered 3 billion dollars less than Samsung for this concept, and that the growth that the latter company has experienced has been much higher. It will be interesting to keep track of them and see what their numbers will be when they close 2022. Anything is possible.

Cover Image | TSMC

Via | Nikkei Asia