TrendForce report of the top chip companies in the last quarter of 2021 – the unrivaled TSMC at the top

TrendForce report of the top chip companies in the last quarter of 2021 – the unrivaled TSMC at the top

TrendForce report of the top chip companies in the last quarter of 2021 – the unrivaled TSMC at the top

News unit Trendforce Institute on Monday, March 14, 2022 (23 Esfand 1400) reports on the performance of the top chip manufacturing companies in the last quarter of 2021 published. According to this report, as expected, TSMC has more than half of the global chip market, and the revenue of this Taiwanese company from making chipsets has exceeded 15 billion dollars in the last quarter. As always, after TSMC, we find Samsung, which is in second place with a great distance from its competitor. Stands. It should be noted that, in this article, TrendForce only deals with contract manufacturing companies for chipsets, and therefore companies without factories – such as Qualcomm or MediaTek – are not the subject of this report.

According to a recent Trendforce report, the total revenue of the top 10 chip manufacturing companies in the last quarter of 2021 , amounted to 29.55 billion dollars, which has grown by 8.3% compared to the previous quarter. Trendforce experts consider this to be the result of the interaction between two important factors; The first factor is the limited growth in total production capacity. Currently, shortages of some parts for TVs and laptops have been resolved, but there are other peripherals – including power management ICs, Wi-Fi and memory control units – that are still in short supply in the industry. The second factor is the rising average selling price (ASP). During the fourth quarter, more and more expensive wafers came into production, and companies adjusted their product mix to raise prices.

Trendforce experts believe that the trend of revenue growth of the top ten chip manufacturing companies will continue in the first quarter of 2022, but the average increase in sales prices will continue to be the main driver of this growth. Of course, it should be noted that the growth rate of the first quarter of 2022 will be slightly lower than the fourth quarter of 2021, because due to the Chinese New Year holiday – which coincides with the first quarter of 2022 – there will be fewer working days in this quarter in the region. We witness Greater China (including China, Hong Kong, Taiwan and Macau).

Revenue and market share of the top 10 semiconductor manufacturing companies in the world in the fourth quarter of 2021

Next, we have a look at The performance of the top chip manufacturing companies:

As it was said, in the fourth quarter of 2021, TSMC has been called the undisputed ruler of the world of chipsets by gaining 52.1% of the market share, and during this period, an income equal to 15.75 billion dollars, which has grown by 5.8% compared to the previous season. Needless to say, despite the fact that TSMC’s share of the market has decreased slightly compared to the third quarter (53.1%), this Taiwanese company still stands in first place with a great distance from its competitor.

Among the important factors of TSMC’s success in the past quarter, we can mention the strong growth of revenue from the production of 5nm chipsets for iPhone 13 series pointed out. Aside from the iPhone 13, one of the most important reasons for TSMC’s progress is its long-standing working relationship with Apple. So that out of every $100 of TSMC’s revenue, about $26 goes from Apple to this company. Needless to say, the only TSMC production line that faced a drop in revenue in the recent quarter was the chip production line with 6 and 7 nm lithography. The cause of this phenomenon should be found in the weakening of the Chinese smartphone market.

TSMC’s biggest competitor (at least for now) is Samsung. According to the report of Trendforce, in the last quarter of 2021, Samsung had about 18.3% of the chipset market share, and in this way, it reached a revenue of 5.5 billion dollars, which was accompanied by a 15.3% growth compared to the third quarter of 2021. Trendforce experts attribute this growth to the completion of the production capacity of advanced 5 and 4 nm chips. Of course, it is interesting to know that despite the 15.3% revenue growth compared to the third quarter, Samsung’s total revenue from chip manufacturing was only 35% of TSMC’s revenue.

Apparently the conditions for Samsung has not been very interesting and it could get worse. Not long ago, one of the Korean media announced that due to the lower efficiency rate of chip production in Samsung (which is about half of the efficiency rate of TSMC) It is likely that Qualcomm will hand over the manufacturing of most powerful Snapdragon chipsets to TSMC instead of Samsung.

After the two famous companies TSMC and Samsung, another Taiwanese company called UMC takes the third title with 7.2% of the global chip market. In the past quarter, this company achieved a revenue equal to 2.12 billion dollars from the chip maker, which is an increase of 5.8% compared to the third quarter. The multinational company GlobalFoundries has taken the fourth place by allocating 6.1 percent of the market. Interestingly, China’s largest chip maker – SMIC – did not rank better than fifth with a 5.2 percent share and $1.58 billion in revenue.

What has hindered SMIC’s progress is the company’s inability to compete in manufacturing 5 and 4nm chips. While TSMC and Samsung have been producing chipsets in these processes for a long time and now they are on the verge of making 3nm chips. Like the United States, China is also seeking to become self-sufficient in its semiconductor manufacturing industry. Now that such a thing has not yet been achieved, some experts are afraid that China may want to take control of Taiwan as well as the largest chip manufacturing company in the world due to the greed of TSMC.

In terms of income distribution, There is no balance in the chip manufacturing industry, as the top five companies in this industry have 90% of the global market share. Of course, when we know that TSMC and Samsung are the leaders in the production of chips with advanced lithography, it becomes easier for us to accept this fact.

The ranking of other manufacturing companies (from 6th to 10th) along with their share of the global market is as follows: HuaHong Group (2.9%), PSMC (1.9%), VIS (1.5%), Tower (1.4 percent) and finally Nexchip (0.9 percent). There is an interesting point about Nexchip company that is worth knowing; It is true that this Chinese-Taiwanese company has the lowest share of the global chip manufacturing market, but on the other hand, it has the highest revenue growth rate (44.2%) in the last quarter of 2021.

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