Counterpoint report on the global smartphone chip market in the first quarter of 2022 – TSMC on top

Counterpoint report on the global smartphone chip market in the first quarter of 2022 – TSMC on top

Counterpoint report on the global smartphone chip market in the first quarter of 2022 – TSMC on top

News unit Counterpoint Research Institute on Tuesday, July 5, 2022 (July 14, 1401) a report on the state of the chipset market in the first quarter of 2022 published. According to this report, the supply of chipsets in this season has decreased by 5% compared to the same period last year, which is due to seasonal fluctuations, weak demand in China due to corona restrictions, and also the oversupply of chipsets by some vendors in the last quarter of 2021. attributed Of course, this drop has been compensated to a large extent by the 23% annual growth of these products, and the reason for this should be found in the use of more chipsets to make more expensive 5G phones.

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%.

The share of global smartphone chipset supply based on manufacturing companies in Q1 2022

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.

Dimensity 9000″ launched (in Q1 2022). It should be noted, Qualcomm’s dual order strategy for making 4nm chips Snapdragon 8+ Gen 1 Expect to increase the supply of 4nm TSMC chipsets in the coming months.

Jene Park, Counterpoint’s senior analyst, while describing Samsung’s performance in the last quarter, while pointing to Samsung’s 30% share of the global smartphone chip market, attributed this achievement to orders from Qualcomm as well as the internal part of Samsung’s chipset production, Exynos. Despite Samsung’s lower yield rate in 4nm lithography, the Korean company captured 60% of the 4nm and 5nm chipset supply shares in the most recent quarter, leaving TSMC with the remaining 40%.

Samsung share and TSMC to launch smartphone chipset with advanced lithography

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

Previous Counterpoint: Qualcomm has about half of the market share of the cellular Internet of Things module in the first quarter of 2022.
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