TSMC has dominated the global chip foundry market. The world’s largest contract chipmaker is a known supplier of industry giants like Apple, Qualcomm, MediaTek, and more and currently holds a 51 percent market share, while Samsung comes in second with just 18.8 percent market share in Q2 chip production market.
While both TSMC and Samsung are moving towards the more powerful and energy efficient 5nm process node, the former has seen dominance in the market due to rising demand for 5G. Despite the South Korean company’s best efforts and investments into its foundry, TSMC is still dominating the market which may seem insurmountable at the moment.
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Furthermore, while the Coronavirus pandemic was a major hurdle to TSMC, demand from TSMC had not lowered. At the moment, the contract chipmaker is mass producing 5nm chips for various brands including, the upcoming Apple iPhone 12 series, which may be the first smartphone to ship with a 5nm chipset. The new Apple A14 Bionic chip will have 15 billion transistors, which is near twice as high as the previous 7nm nodes.
Notably, the firm is also making 5nm chips for Huawei‘s HiSiicon semiconductor unit. Although, due to recent US sanctions, TSMC can only produce chips that were already ordered, and can no longer supply the Chinese tech giant in the future. Huawei had accounted for 15 percent of TSMC’s source of revenue back in 2019, but apparently, the company has already replaced Huawei orders.
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(Via)
