In recent years, TSMC has been leading the semiconductor market with its cutting edge chips and advanced production capabilities. And now, a new report reveals certain information as to why Samsung Electronics trails behind in the industry.
According to a NikkeiAsia report, the South Korean tech giant’s Vice Chairman Lee Jae-yong had flown to the Netherlands back in fall 2020 despite the coronavirus pandemic. The senior official made the trip to meet up with AMSL, who is the exclusive semiconductor production equipment supplier. The equipment made by the firm are critical to Samsung’s semiconductor operations to produce cutting edge products. But out of the total 100 units ASML shipped worldwide, more than 70 percent of these went to the South Korean brand’s rival Taiwan Semiconductor Manufacturing Co.
For those unaware, TSMC is the world’s largest contract chip maker in the world has been leading the market while also being the primary supplier for various fabless chip makers like Qualcomm. Furthermore, the trip made by Samsung’s executive also signifies the sense of crisis for the company, as per the report. The crisis is likely caused by the lose of ground to TSMC for advanced semiconductors.
At the moment, the South Korean electronic maker is struggling with the mass production of advanced products such as CPU chipsets, which are the primary components that drive the smartphones. Thus, losing the market share in contract manufacturing due to inferiority in cutting edge products would weaken the brand’s competitive viability in the market in the industry.
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