SamMobile has affiliate and sponsored partnerships. If you buy something through one of these links, we may earn a commission. Learn more.

Samsung Foundry’s market share in chip making segment could fall in Q3 2020


Last updated: August 25th, 2020 at 07:28 UTC+02:00

Samsung Foundry is the world’s second-biggest player in the contract chip-making business, and it makes chipsets for various brands, including AMD, IBM, Nvidia, and Qualcomm. The company has been investing heavily to improve its fabrication technologies and to better compete with the current market leader TSMC. However, it is now being reported that Samsung’s market share could fall in the next quarter.

According to a new report from chip market analysis firm TrendForce, Samsung’s share in the global foundry business is estimated to be 17.4 percent in the April-June 2020 quarter, down 1.4 percent from the previous quarter. The company’s revenue from the foundry business was expected to jump 4 percent to reach $3.66 billion. However, TrendForce says that the growth would end up being less than the industry average.

Due to the lower sales of its Galaxy S20 series smartphones, the company has lowered the production of its in-house Exynos processors. However, due to the COVID-19 situation, the company’s clients ordered more chips than usual so that they could stock up for the future, leading to higher sales in the previous quarter.

TSMC, Samsung’s primary rival, is expected to solidify its market share even further in Q3. It is expected to capture a 53.9 percent share of the market, 2.4 percent higher than the previous quarter. The Taiwanese firm is expected to post revenue of $11.3 billion, a 21 percent improvement from its previous numbers.

Despite investing heavily, Samsung was six months to a year late compared to TSMC in starting the mass production of 5nm chips. TSMC has managed to bag 5nm chip orders from Apple and Qualcomm, and the company has already begun the mass production for Apple’s A14 series chips. Samsung, on the other hand, has been reportedly having problems related to the yield of its 5nm EUV process.

Via Business Samsung Foundry
Load 1 comments

You might also like

Investors worry Samsung’s chip division has lost its ability to innovate

Market watchers and investors are worried that Samsung Electronics is losing its grip on the semiconductor market. More so, Samsung is reportedly losing ground due to internal issues rather than external factors driven by the competition. Critics worry that the Korean tech giant, particularly its chipset division, has lost its ability to innovate under Lee […]

  • By Mihai Matei
  • 2 weeks ago

Despite slowing smartphone sales, Samsung achieves its best ever Q2 profit since 2018

After revealing its earnings guidance a few days ago, Samsung announced its earnings for Q2 2022 earlier today. The company said that its revenue was KRW 77.2 trillion (around $59.1 billion), its best ever for second-quarter figures. The South Korean firm’s revenue was a 21% improvement compared to Q2 2021. The company’s Q2 2022 profit […]

  • By Asif Iqbal Shaik
  • 3 weeks ago

Samsung is helping domestic fabless chip firms create prototype designs

In another bid to foster domestic growth, Samsung’s chipset foundry division has decided to help a few South Korean fabless chip design houses create prototypes and validate pre-production concepts at reduced costs. After a selection process of a few weeks, Samsung chose to help five fabless chip design houses, including DeepX, GLS, SKAi Chips, Semibrain, and […]

  • By Mihai Matei
  • 3 weeks ago

Samsung faces more competition as Intel enters the contract chip manufacturing space

Samsung Foundry is the world’s second-biggest contract chip manufacturing firm. While the company is spending hundreds of billions of dollars to defeat its primary rival, TSMC, it has found a new competitor in the space: Intel. The company used to design and manufacture its own chips, and last year, Intel opened its foundry service for […]

  • By Asif Iqbal Shaik
  • 3 weeks ago

Samsung ships its first set of 3nm chips, marking an important milestone

Last week, it was revealed that Samsung will unveil the world’s first 3nm chips on July 25. Today, the South Korean firm held a ceremony for the first shipment of its 3nm GAA chips. The ceremony was held at the company’s V1 line at Hwaseong Campus in Gyeonggi-do province in South Korea. The event was […]

  • By Asif Iqbal Shaik
  • 3 weeks ago

Samsung could build 11 chip factories in the US with an investment of $200 billion

Samsung recently started working on its $17 billion semiconductor chip plant in Texas. However, the company’s investment plans don’t end there. The South Korean firm reportedly has plans to build as many as 11 chip factories in the state over the next ten years. A new report from Austin American Statesman claims that Samsung could […]

  • By Asif Iqbal Shaik
  • 4 weeks ago