Samsung to rank fourth in 2021 in chip fabrication capacity for matured nodes

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Last updated: February 3rd, 2021 at 05:54 UTC+01:00

Samsung is currently the world’s largest memory chip maker and the second-largest semiconductor firm by revenue. However, in terms of foundry capacity share for matured nodes, the company is projected to rank fourth globally. Matured or legacy nodes refer to 40nm or older chip fabrication technologies.

According to Counterpoint Research, Samsung will rank fourth in fabrication capacity for matured nodes. It will rank behind industry leader TSMC (Taiwan Semiconductor Manufacturing Company), which is predicted to have a 28% share of the global chip fabrication capacity. UMC (United Microelectronics Corporation) is predicted to have a 13% share, while SMIC (Semiconductor Manufacturing International Corporation) could have an 11% share in legacy node production capacity.

The South Korean tech giant ranks fourth in legacy node capacity because it focuses on advanced nodes such as 10nm, 7nm, and 5nm. Samsung Foundry is currently manufacturing 5nm chipsets for Qualcomm and System LSI. Samsung and TSMC are the only companies that have been successful in mass-producing chips with 7nm or newer processes. Hence, brands like AMD, Apple, Huawei, Intel, Nvidia, and Qualcomm have turned towards Samsung and TSMC for their chip orders.

Global Foundry Capacity Share Matured Nodes 2021 - TSMC Samsung

However, not every industry needs advanced fabrication processes, and it has been noticed that chip manufacturing firms didn’t spend enough from 2015 to 2018, which resulted in a demand-supply imbalance.┬áSince last year, there has been a massive shortage of semiconductor chips, and that has affected various industries, including automotive, smartphones, computers, gaming consoles, and servers. This shortage will continue in 2022 as well.

Samsung is predicted to have an 18% revenue share in the global foundry market, while TSMC is predicted to top the industry with a 54% share of the market. Industry insiders predict that there will be a massive capital investment cycle in the semiconductor industry from 2021 to 2023. Intel, Samsung, and TSMC are expected to be the top three firms in terms of capital expenditure.┬áSamsung is aiming to invest $115 billion this decade to become the world’s biggest semiconductor firm by 2030.

Via Source General Samsung Foundry
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