Counterpoint report on the global smartphone chip market in the first quarter of 2022 – TSMC on top
As always, TSMC, the largest manufacturer of semiconductor products In the world, with 68.9% of the market share, it has the first global rank in terms of supply, followed by Samsung ranks second with a 30% share. In this way, we are facing a Taiwanese-Korean double monopoly in the mobile chipset market, as the total share of other manufacturers in this market is reported to be only 0.1%.
According to Parv Sharma, senior analyst at Counterpoint, manufacturing semiconductor products is highly capital intensive or CAPEX, and at the same time, it is a business that requires access to The technology is very advanced. These two factors have created a double monopoly in the production of advanced chipsets for smartphones. He added: “TSMC and Samsung own the entire smartphone chipset market, and TSMC’s share (in terms of production scale and market share) is twice that of Samsung.”
Subsequently, TSMC’s investment volume in this field is also much higher than other competitors. For example, between 2021 and 2023, TSMC plans to spend more than $100 billion on 3, 4, and 5 nm chip manufacturing facilities, wafer fabrication equipment (WFE), and 3D packaging. To meet the growing demand, increase chip production with 4, 5 and 28 nm lithography. All these things ensure a large share of advanced lithography chip production for TSMC.
At the same time, we should not forget that the production of smartphone chips by TSMC in the first quarter of 2022 has decreased by 9% compared to the same period last year. The main reason for this phenomenon is that Qualcomm is planning to produce X60 modem went to Samsung instead of TSMC. Of course, the annual decrease in chipset supply by MediaTek has not been unaffected in this drop. It should be noted, according to Counterpoint experts, that Qualcomm has switched to two sources (TSMC and Samsung) for the production of its chipsets, which will eventually increase TSMC’s production volume in 2022. Also, the increase in the production of advanced 4nm chips by Qualcomm, Apple and MediaTek can increase TSMC’s share of mobile chipset manufacturing in 2022.
4nm chips Samsung mainly to the chipset Snapdragon 8 Gen 1 cores; The flagship chipset that in just one season, more than 75% of the series phones Galaxy S22 were produced using it. Not to mention, Samsung for Galaxy A53 and A33 – which have a higher production volume – of the updated and fifth-generation chip