Taiwan Semiconductor Manufacturing Company (TSMC) has already been serving many big giants. The list is lengthy, it includes the brands most of the leading fabless semiconductor brands such as AMD, Apple, ARM, Broadcom, Marvell, MediaTek, and Nvidia, which are customers of TSMC. The company become a tough competitor for Samsung in its chip business. Even we have heard a lot that Samsung these days pushes hard in order to increase their performance. Still, as per the news, TSMC continues to batter Samsung.
The South Korean giant faces a big slouch which impacts its significant earnings in the past quarter. Now it seems like it may end up losing its tag as the world’s largest chipmaker in terms of sales to the Taiwan Semiconductor Manufacturing company.
Memory chip demand plunge has lowered Samsung’s earnings
Notably, back in the year 2017 when Samsung broke the record of Intel. As Intel is the world’s largest chipmaker for 24 years in terms of sales. Since Samsung advanced DRAM and flash storage techs combinely with high demand enable them to fetch this tag. On the other hand, Intel was again able to hold the title once again in 2019. Whereas Samsung did a comeback in 2021 respectively.
Although the major of its sales leads by memory products. Now Samsung faces a tough time in order to retain the crown. As company’s DRAM sales declined in the second quarter as well while the tough market condition does not seem to improve in the near future as well. The South Korean giant already released its statement that it going expect its Q3 2022 profit to decline by 31.7%. Noticeably, this is the first drop in the last three years.
On the contrary, TSMC continues to grow and score a major win against Samsung. While the yield issue is also one of the reasons that forced Qualcomm to assign all orders for its 3nm processors to TSMC. Apple also allegedly choose TSMC over Samsung to make its 3nm M3 and A17 Bionic chips.
Additionally, last week TSMC unveiled its Q3 2022 earnings of $19.4 billion, which beats the market estimates. Hence, analysts speculate that Samsung’s chip division won’t able to match these figures which expect to achieve $17.8 billion for the quarter. This makes it possible for TSMC for the first time to be on the top in chip sales.
Adding further, TSMC remained largely insulated as it already has a contract of manufacturing on behalf of several big giants. Also, it is expected that the price of the memory products seems to be expected to be lower further, things may become worse before their condition become good.
