A report by Digitimes quotes insiders in the semiconductor industry to have revealed that Samsung’s 14-nanometer process has recorded a surge in orders from manufacturers from mainland China, driving Samsung’s quarterly growth in capacity utilization.

The report pointed out that due to certain international reasons, as well as China’s acceleration of independent chip research and development and the continuous expansion of related market scale, Samsung has been listed as a diversification ally, and orders have flooded into Samsung Electronics, making its order performance above 14 nanometers exceed expectations.

It remains to be seen whether this move will have an impact on TSMC and UMC’s business in China, but it can be expected that Samsung will have huge new orders for the 14-nanometer process and above, which to some extent makes up for the decline of the advanced process below 7-nanometer.

While Samsung is expanding its orders, Chihara and M31, which have good partnerships with Samsung, have also unexpectedly benefited. In 2021, the proportion of Chinese customers will also increase significantly.

Although it is believed that Samsung’s 3 nanometer and other advanced processes are not as good as TSMC in general, Samsung is still quite confident in catching up with TSMC in the future. The Korean tech giant continues to speed up the process and also continue to accept large orders.

As we all know, TSMC has always been a leader in the semiconductor industry in China and the world and is therefore favoured by Chinese companies. However, the price is more expensive than Samsung. Coupled with the increasing calls for de-beautification in China,

On the other hand, Samsung Electronics’ chips are also fully cooperating with Chinese mobile phone manufacturers to sell its own Exynos series of chips to Vivo, Xiaomi, OPPO, etc. This also helps Samsung’s own foundry capacity utilization rate increase in another way. , While benefiting Samsung Exynos, it may further erode the shares of MediaTek and Qualcomm.

The semiconductor industry said that although Samsung’s advanced manufacturing process has a large gap with TSMC, TSMC’s R&D speed is bound to slow down below 3nm, and it is not impossible for Samsung Group, which has top-level human resources and national financial resources, to truly surpass TSMC.

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Xiaomi is yet to release any smartphone since this year but a recent forecast by research firm DigiTimes tips that the Chinese tech company would likely overtake OPPO in the first quarter of this year to become the second-largest smartphone maker in China. According to industry sources, demand for parts from China’s top smartphone makers has rebounded recently, with some supply chain vendors already getting short-term orders from these companies. This means the decline in phone sales experienced last year in China may not continue this year. I this regard, Digitimes Research has released its forecast for the first quarter of 2018 for China.

According to the research firm, Huawei is expected to retain the number one spot as the largest smartphone company in the first quarter of this year. However, there is a strong likelihood that Xiaomi will replace OPPO as the second largest smartphone company in China, as sales of Xiaomi products in Russia and Eastern Europe are on the rise. Thus, DigiTimes Research predicts that OPPO will drop to the third position in the first quarter of this year while Vivo will occupy the fourth spot and Lenovo will come in at the number 5 position.

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Xiaomi pulled a resurgent performance last year following a dismal performance in 2016. The company’s shift to markets outside China especially India and Eastern Europe and others were key to its rebound. While the international concerns were growing, the entire domestic market in China experienced a decline and it affected Xiaomi’s domestic growth. However, the company plans to re-jig its China market while expanding to newer turfs and consolidating on already established terrains. Its performance in the first quarter is key to determining how it would perform in China this year. Already, the Mi 7 and Mi Mix 2s are lined up for launch in the first quarter and they are both expected to do well in the market. Apart from that, the Redmi 5 and Redmi 5 Plus, XIaomi’s first bezel-less full-screen phones are doing perfectly well in the market as well as older models.

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