Smartphone chip production dominated by TSMC and Samsung

Smartphone chip production dominated by TSMC and Samsung In the first 3 months from January to March 2022, Taiwan Semiconductor Manufacturing Company (TSMC) produced the most chips, according to Counterpoint Research’s latest report. TSMC has a 70% market share for application processor (AP) and system-on-chip (SoC), which are included in smartphone chipsets.

Samsung Foundry, which is in second place, has a 30% market share. For the rest of the smartphone chip manufacturing industry, they did not get enough market share. It is not easy to compare TSMC and Samsung Foundry side by side. The equipment used for the chip manufacturing plant; The capital investment for the building is huge.

It is difficult to expand the business. TSMC is building new factories as it plans to invest $100 billion in 2021-2023. The total number of units shipped to the global smartphone chipset market was 5% lower than in the first 3 months of 2021. At the end of 2021, the amount in the market was much more than what was needed, so the delivery to the market was reduced at the beginning of 2022. Income is 23% higher.

In the first 3 months of 2022, Qualcomm’s Snapdragon 8 Gen 1 chip pair. Around 60% of Samsung’s chipsets are manufactured for Qualcomm. The Snapdragon 8 Gen 1 Plus was handed over to TSMC after Qualcomm no longer awarded the contract to Samsung Foundry. So, for the remaining 3 months of this year, TSMC will remain in first place with a clear margin. Qualcomm, MediaTek and Apple have submitted contracts to TSMC.